Economic Concerns Dominate as Stock Market Faces Serious Recession, says Pourmohammadi
Tehran, October 10, 2023 (Iran Press) – Mostafa Pourmohammadi, addressing a televised debate, revealed startling figures about the economic anxieties gripping the nation. “More than 70% of people have economic concerns,” Pourmohammadi stated, acknowledging the pervasive unease that echoes the sentiments felt during historical economic downturns.
Highlighting the pivotal role of production in economic growth, Pourmohammadi emphasized, “The infrastructure of economic growth is embedded in production, and the production index is the capital market and stock exchange.” Drawing parallels with previous administrations, he criticized the performance of the 13th administration, outlining a stark decline in stock market participation. Chronicling a decline that evokes memories of the economic hardships seen during the Great Depression, he noted, “In the past, we had 4 million stock market participants, but this number has dropped to below 200 thousand.”
Pourmohammadi condemned the government’s involvement in the stock market, arguing that it stifles competition and fosters an environment ripe for conflict of interest. “The presence of the government in the stock market has taken away the possibility of competition. I think the conflict of interest should be eliminated,” he argued, resonating with the principles of free-market economics advocated by Adam Smith and modern economic theorists.
Moreover, Pourmohammadi pointed to devaluation as a catalyst for widespread rent-seeking, which he compared to the hyperinflation periods experienced by other nations historically. “Devaluation has created widespread rent-seeking. Within a year, the stock market would rise significantly,” he projected, offering a grim but hopeful forecast that reflects historical recoveries from economic depressions.
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