Regarding economic recession in country, Seyyed Mohsen Tabatabaei Mozdabadi said: in my opinion, several reasons and factors are involved in these conditions, some of them have economic hue and others have psychological aspect.

With the coming of eleventh state in 1392, the policies of economic stabilization, reducing fluctuations and inflation rate particularly was considered by the new government to the extent that the inflation rate in 1392 was equivalent to 7/34 and in 1393 was 6/15, but the immediate reduction of the inflation rate was the result of contraction in the money market, the continuation of this policy by the government, dramatic decline in oil prices, and consequently the country's oil revenues drop by about 50 percent of its former level, and also lack of access to revenues of oil resources because of bank sanctions, caused new conditions to entrance to recession.

Markets expected to end nuclear negotiations and a kind of pause in buy and sell was created. This issue caused economic downturn in the country goes to the brink of crisis.  In fact, the letter of four Ministers of Economy and Finance, Cooperatives, Labor and Social Welfare, Defense and Armed Forces Logistics and Industry, Mine and Trade can be seen as the biggest warning to the president's cabinet.

For the nobility of recession, the capital market and stock exchange as the country's economic pulse can be considered. With symbol of more than 40 industries in this market, it can be accessed virtually into the economy in most industries and sectors.

Reduce the market value from January 1392 to September 1394 of 43%, based on prices and reduce the market value of 180 billion dollars, i.e., from 511 billion dollars in January 1392 to 330 billion dollars in September 1394, show the deterioration in the stock market and the deepening recession in the economy, particularly in industries such as chemical products, basic metals, petroleum products, minerals, metals, banks and credit institutions, Tabatabaei said.

Referring to the economic stimulus package of exit from Recession, Tabatabaei said, this package contains short-term and quick turn policies to manage the expectations of economic activists, while solving economic problems requires long-term and structural and institutional reforms, and even it is possible to make this temporary policy of some problems on exacerbate the economic arena.

Source : ILNA News Agency