May 28, 2023

Economic turmoil and rigid policies: Iranian regime caught in Bermuda Triangle of crisis

Back to All
by Farhad Rezaei, Senior Research Fellow

Iran’s economic crisis is far more severe than previously thought, a recent report in the Persian-language media reveals, shedding new light on the profound challenges the Islamic Republic is facing.

The report, titled “The actual budget deficit in Iran’s economy” reveals that the Iranian government is grappling with a budget deficit of 794 trillion tomans, which is approximately $18 billion based on the current exchange rate of 42,000 tomans per $1.

Furthermore, the report states that the government’s debt is an astounding three quadrillion tomans, equivalent to $71 billion, approximately 31% of Iran’s gross domestic product.

This debt encompasses obligations to various Iranian entities such as banks, the Central Bank of Iran (CBI), pension and social security funds, public and private sector contractors, as well as outstanding bonds. Additionally, the government owes about $74 billion to the National Development Fund.