20% share of mining industry in non-oil exports
Chairman of the Mines and Mining Industries Commission of the Iranian Chamber of Commerce: If we reach a point where people can no longer afford to buy, it will cause a recession along with inflation. If the product can no longer be sold and there is no buyer, all sectors of the economy All mines are damaged.
According to the International Iranian Stone Exhibition, Bahram Shakoori stated about the impact of 34% inflation in the mining sector: Naturally, the mining sector is not separate from other economic sectors in the country. It is natural that inflation will have an impact on the mining sector as well. The mining sector is also a consumer of some goods and is affected by inflation in the purchase of raw materials and other supplies. We hope that the government will reduce inflation and reduce the pressure on the people with its monetary and fiscal policies.
He added that equipment and machinery, raw materials, consumables, food and personnel clothing, as well as rising energy prices, are affecting mining activists. If inflation continues like this, inflation will stagnate because people will no longer be able to buy. In the mining industry, most products may be traded in vain, but in the end they are final consumer goods, and if we reach a point where people can no longer afford to buy, it will cause a recession along with inflation, if the product can no longer be If there is no seller and no buyer, all sectors of the economy, including mining, will be affected.
Shakoori added: "For example, by reducing construction activities in the country and not allocating funds to construction projects, in addition to the activities of construction companies, it affected the road construction, mining and employment sectors because companies in these sectors were forced to adjust part of their workforce."
The head of the Mines and Mining Industries Commission of the Iranian Chamber of Commerce pointed out: When prices increase, the incentive to produce may increase first, because producers think that by increasing the price of the product, they will make more profit; But the price increase reaches a point where there is no more purchasing power, at which point the recession begins in addition to inflation, meaning that the price of products is high and no one sells cheaper, but there is no purchase for the product. This is the ultimate failure for the country's economy.
He added: "Since most of the mineral products are exported, some of these problems will be compensated by the export of the product, but this will not continue and we must move towards reforms in the structure of the country's banking and monetary system." The official statistics that can be relied on will be announced two years later, so there are no exact statistics on the export of mineral products, but the mining sector has been able to have good exports and have a share of nearly 20% in non-oil exports.
* ILNA
