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Iranian adviser disputes Trump's claim that its economy is collapsing
CNBC • • general
Key Points:
- Mehrdad Sepahvand, former adviser to Iran's central bank, challenged President Trump's assertion that Iran's economy is on the verge of collapse, noting that while deteriorating, it is not unraveling.
- Iran's GDP contracted by 2.7% in the year ending March, with inflation soaring to 62.2% and food prices nearly doubling, amid sanctions and regional hostilities.
- The UAE's recent decision to sever trade and financial ties with Iran, previously its largest import source, is expected to deepen Iran's economic contraction to around 5% this year.
- Despite economic pressures, Sepahvand highlighted that public confidence in the banking system remains intact, and basic goods are still available without panic buying.
- The ongoing U.S. sanctions and economic warfare are strengthening hardliners within Iran, complicating prospects for a diplomatic agreement and disproportionately impacting low-income and young Iranians.
