Economy, Domestic Economy

High Inflation Discourages Investment

High Inflation Discourages Investment
High Inflation Discourages Investment

The president’s chief of staff Mohammad Nahavandian said on Monday that investors are unlikely to risk their money and invest in national projects amid high rates of inflation, ILNA reported.

He made the remarks in an address to a conference on productivity and maintenance in water and wastewater industries held in Tehran.

In October 2013, inflation reached as high as 40.4 percent, which is unprecedented in almost two decades.

Praising the government’s overall economic performance during the past one and half years, Nahavandian said the government has managed to reduce the inflation rate to 17%. “Economic stability is the government’s greatest achievement.”

According to a report released by the Central bank of Iran earlier last week, the Rouhani administration has been able to decrease the Inflation rate to 17% from nearly 40% a year ago.

The president’s chief of staff added that the government and the private sector should form what he called a “symbiotic relationship,” calling on the private sector to help the government better implement development projects.

He said that the private sector should play a more effective role in giant projects in the water industry, and noted that the government’s budget alone is not sufficient for running such projects.  

“The government is trying to get the sanctions lifted and improve economic ties with other countries so as to create new opportunities for the economy,” Nahavandian said, referring to the dynamic foreign policy adopted by the Rouhani administration.