100 billion needed: Iran cannot achieve economic goals alone

100 billion needed
Iran cannot achieve economic goals alone

01.09.2024, 15:03

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Iran is struggling with double-digit inflation and unemployment rates. A boost in economic growth could counteract this, but sanctions are paralyzing the country. The financial injection is to come from abroad.

According to President Massoud Peseschkian, Iran needs foreign investment of around 100 billion dollars. “This sum is necessary to achieve the goal of economic growth of eight percent per year,” Peseschkian said in an interview with state television. It was his first live interview since his election as president in July.

Peseschkian explained that Iran would need a total of up to 250 billion dollars to achieve its goal. However, more than half of this amount is available from domestic sources. Experts say that an eight percent growth in gross domestic product would reduce the double-digit inflation and unemployment rates. Growth is currently around four percent.

However, hundreds of companies and individuals in Iran – from the central bank and government officials to drone manufacturers and money changers – are subject to international sanctions. Many of them are accused of supporting Iran's Revolutionary Guard and foreign militant groups such as Hamas in the Gaza Strip, Hezbollah in Lebanon and the Houthis in Yemen.

In the interview, Peseschkian complained about the sanctions and said that his government plans to reduce inflation, which is more than 40 percent annually. To do this, the problems with neighbors and the world must be resolved. He did not provide any details.

The president confirmed that his first foreign visit will take him to Iraq. He will then fly to New York to attend the United Nations General Assembly on September 22 and 23. In New York, he announced that he will invite Iranians living abroad to invest in Iran. Of the more than eight million Iranian emigrants, about 1.5 million live in the United States.

Peseschkian was sworn in last month and is considered reform-minded. His predecessor, Ebrahim Raisi, died in a helicopter crash in May.