Jul 31, 2009

Economical Aftermath

The continuation of political crisis in Iran is going to be followed by economical crisis. Every one knows about this year's extreme budget deficit and the high spending of past time. The tension dominating existing social-political atmosphere, is showing it's effects on economy and on how people spend or save. Surprisingly inflation is growing, while in most countries it's getting down.

A trusted newspaper reported recently that 150 big companies are going broke, or already have been. Some are among the major's, like Iran Khodro, the biggest car producer in Middle East. Few people working in different branches told me they haven't got their salary for three months. Job cuts will follow. The more unemployment, the more instability.

Government struggling with both legitimacy and financial problems, seems to be unable to pump enough money in non efficient companies. The private sector suffering of both rescission and ongoing instability, can not expect funds from inside or outside. Lack of cash is now much more tangible than one or two years ago. Those who have it, won't risk and spend, before they know where the whole country is heading to.

International sanctions have left hard damage. The effects of today's US sanction on gasoline import is yet to come. International investors hoping of a positive change after elections, have now dropped or suspended their plans. Within the small business I hear of Iranian merchants who have been cheated by Chinese mob, because of banking limitations, like not being able to open a LC. They need to pay cash without being sure about delivery. Personally since two years, I have been unable to transfer even a small amount of money from Europe to Iran or otherwise. In the middle of summer, tourism has become a name for something memorial. Less people dare to come over, and those who travel, fear to fly after recent deadly airplane crashes.

Economical sectors succeeded to keep up, can hardly go on longer like this, because most customers are much more hesitant than before. Every one thinks now more about day to day necessities, rather than long term investing. Simply because the long term perspective is now more unclear than ever.

1 comment:

شهرام صاحب الزمانی said...

باسلام و احترام خوشحالم که بالاخره دیدار تازه شد .
من از دوستان قدیمی فریدون و همکار شما در فیلم موهبت زمین هستم . قطعا" مرا بخاطر می آورید . بادیدن عکسهای شما یاد روز افتادم که به منزل شما آمده بودیم برای درس خواندن و کنتاکتهای شما از عکسهایی از تگرگ و ترمینال جنوب با کنتراستهای بالا را می دیدم . با فریدون در تماس هستم . با افتخار شما رالینک کردم عکسهایی از اراک و یه سری مطلب در وبلاگ دارم خوشحال شدم
شاداب باشی
شهرام / اراک