ID :
341915
Sat, 09/20/2014 - 13:46
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Production Growth Rate Takes Downward Trend In Economic Recession

Tehran, Sept 20, IRNA – An economic expert says under economic stagnation production growth rate takes a downward trend. He added that inflation on the one hand and unemployment and stagnation on the other hand affect national economy and impose huge costs on the society and the public. Speaking to IRNA, university lecturer Alireza Najafi said economic and social problems in the society escalate when inflation and stagnation emerge simultaneously. “This is the same phenomenon that is quite visible in Iran’s economy at present.” He pointed to the two digit inflation rate, escalation of international sanctions and growing liquidity as elements paving grounds for the emergence of stagnation. He said in order to lower inflation liquidity should be reduced because it escalates stagnation. “Lowering stagnation is nothing but injection of financial resources and liquidity which entails inflation and this will be continued up to the emergence of recession.” He referred to support for production boom as a mechanism to come out of stagnation and said at the time of recession no boom could be easily created in national production due to the absence of required facilities. Therefore, he added, the country would become dependent on imports./end

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