Has Iran entered ‘New Era’ of Economic Policies?

The supreme leader’s Aug, 26 speech in his meeting with the Cabinet also conveyed the message to all domestic and foreign investors that all the forces back the government in establishing this new paradigm of economic management and that there is no intention of going back to the previous administration’s economic policies. In fact, investors should be assured that the Iranian economy will be led within such a framework. Providing this assurance will remove most of the future-related risks.

Khamenei’s emphasis on the fact that the economy is the first priority of the country and that reaching an 8% annual economic growth rate is a necessity conveys the message that, from now on, the security-political risks (domestic and international) will be managed in a way that a serene and secure condition required for investment and economic activities is provided.

The other important point highlighted during the Aug. 26 speech was the supreme leader’s support for the government’s efforts in concluding the nuclear negotiations. He further expressed hope that the unsolved problems regarding the implementation of the accord will soon be resolved.

This all implies that upon sanctions relief and the recovery of Iran’s economic relations with other states, the Iranian regime aims to manage the economy within this new paradigm.

In short, the supreme leader’s speech was a threshold for the beginning of a new era in the management of Iran’s economy, the features of which include macroeconomic stability, expansion of economic relations with foreign countries and development of non-oil exports in order to reach sustainable and rapid economic growth.

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