Data on Iran Dims Outlook for Economy

Oil production in Iran is an essential component to the economy.  Unfortunately, oil production fell in September, leaving Iran in its weakest level in nearly a quarter-century.  According to the International Energy Agency, Iran's ability to produce oil will decline "for years to come if Western sanctions were not lifted."  Further signs of economic weakness were acknowledged as there were severe drops in automotive production and port calls.  In addition, the rial (Iran's currency) "lost 40 percent of its value against the dollar this month."  This drop has significantly increased the cost of imports of auto parts and the rial is now one third of what it was worth three years ago.  Even middle-class families are scrambling to put food on the table, and the poor are suffering even more.  Outside economists have suggested that the sanctions, which have restricted Iran's ability to sell oil and engage in international banking transactions, are having a profound effect on the situation.  On the other hand, the speaker of the Iranian parliament, Ali Larijani, says that majority of "the problem is rooted in the government's mistaken policies."
More information at:

http://search.proquest.com.libproxy.noctrl.edu/nationalnewsexpanded/docview/1103128124/139C124763F1C4C3D2/35?accountid=44854
http://www.wellandtribune.ca/2012/10/12/irans-currency-woes

Amanda Ngo