Iran aims to achieve 9.54 percent inflation, 13.8 percent increase in liquidity by 2027 horizon

(MENAFN) The caretaker of the Central Bank of Iran’s (CBI) Monetary and Banking Research Institute, Kourosh Parvizian, has outlined ambitious economic targets for the country under the seventh National Development Plan, which spans from 2023 to 2027. According to Parvizian, Iran aims to achieve a 9.5 percent inflation rate and a 13.8 percent increase in liquidity by the end of this development plan. These goals are part of broader measures intended to reform the banking system and enhance overall economic stability.

During a meeting on macroeconomic strategies held on Monday, Parvizian emphasized that the law governing the seventh National Development Plan includes specific objectives and measures for banking system reform to reach the set targets. The meeting, which was focused on economic governance, included participation from notable figures such as Mohammad Shirijian, the CBI deputy governor for monetary policy; Nasser Khiyabani, a faculty member at Allameh Tabatabai University; Teymour Rahmani, a faculty member at Tehran University; and Peyman Ghorbani, the deputy head of the Nations Credit Institute.

A key topic of discussion was the causes of inflation within Iran’s economy and the critical role of monetary and financial policies in managing inflation. Rahmani, who also spoke at the meeting, commented on the economic growth projections outlined in the seventh National Development Plan. He suggested that aiming for an eight percent growth rate might be unrealistic given current economic conditions. Rahmani argued that the primary focus should be on controlling inflation rather than aggressively pursuing high growth rates. He recommended targeting a more manageable inflation rate of around 14 to 15 percent, which could be considered bearable in the current economic context.

Rahmani further noted that without effective inflation control, achieving the targeted economic growth of eight percent would be challenging. Given Iran’s reliance on oil revenues and the resource-oriented nature of its economy, he indicated that it would be difficult to significantly boost economic growth from the current four or five percent to eight percent in the short term.

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