nufix
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You know that saying case closed wont actually close the case right?Case closed
But hey, I mean if that figure makes your sleep better at night...
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You know that saying case closed wont actually close the case right?Case closed
You know that saying case closed wont actually close the case right?
But hey, I mean if that figure makes your sleep better at night...
Except two things that matter, type of exchange rates being used and Iran' GDP figures in Rial. Those are the underlying factors which validate or invalidate any numbers put forward thereafter.Mr @aryobarzan has explained everything in fluid English
Finally answer which makes senseThe IMF's numbers are based on the official exchange rates, so they are not totally BS. If anything, it is Iran's government that might be BS-ing the numbers.
Iran maintains an official exchange rate that is completely detached from the open market rate (rates people are actually willing to trade USD against IRR with). At the moment it is IRR 42000 (official rate) against 270000+ (market rate), that is 6.5 times difference between the two rates. So an official GDP of USD 1.7 trillions is USD 260 billions in real life. Conversely, Turkey GDP is USD 4.5 trillion and Israel GDP is USD 2.6 trillions according to Iranian's exchange rate regime to USD.
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Glad to know you answered all your points yourselfAnother interesting find is Iran's latest GDP figure in rial as published by Iran's central bank (finally found it thanks to a good Iranian friend of mine). https://www.cbi.ir/page/23635.aspx
Iran's GDP in current prices kinda shows an impressive growth
View attachment 872962
But Iran's GDP in constant prices are actually stagnating.
View attachment 872961
Current prices are figures not adjusted to inflation whereas constant prices are figures adjusted to inflation. Current prices are base for nominal GDP whereas constant prices are base for Real GDP. GDP nominal taking the current prices into account is not usually an issue in determining a country's GDP because the differences between nominal and real are negligible, but in this case, the difference significant! A wide gap between the two figures of a country is usually a good indicator of massive inflation problems in that country.
The same publication also shows that the value of IRR in open rate is slipping down further against the USD.
View attachment 872963
There are two issues here. First is Iran's deliberate use of official exchange rate, and deliberate use of current prices as a singular index when talking about GDP.
Glad to know you answered all your points yourself
1- Rats data is indeed correct and not manipulated before being sent to IMF (I recall you referred to the figures as BS in your post .. not sure who the RATS are here!)
2- Iran official exchange rate is 42000 and used by IMF to calculate the GDP (may be because 95% of Iran trade is done using that exchange rate!)
3- IMF uses "Current prices" to calculate "nominal" GDP for all countries and not just Iran (we do not apologize for having a high nominal GDP! and yes we do have a high inflation and therefore GDP PPP is not at the same level as GDP nominal)
Now if you are not happy with any of the above, I suggest you take it up with the IMF board of directors and complain that their economics team are bunch of idiots and YOU are the MAN who knows better..
I forget where I read it, but I read an article that said Iran is wealthier than KSA and has more millionaires or billionaires or something. Is that true?
So we have the 2nd largest GDP in the Islamic world. Highest in middle east despite sanctions.
https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)
If JCPOA is successful where would we go from here?
Iran is a great country with great culture. She deserves a respectable position in world.
You're bumping false information since this is measured at official exchange rate, an artificial exchange rate no one is using, in reality the exchange rate in the black market is much worse, cutting the nominal GDP of Iran by almost 10Bump
You're bumping false information since this is measured at official exchange rate, an artificial exchange rate no one is using, in reality the exchange rate in the black market is much worse, cutting the nominal GDP of Iran by almost 10