Page 23 - IRANRptFeb22

used violence against the strikers and arrested several people, RFE/RL reported. There have been some local reports that teachers are not happy with the awarded pay hike and that labour action will continue.
Measures passed by legislators guarantee that teachers will earn about 80% of the salaries of university faculty members. That meets one of the protesters' demands.
Lawmaker Alireza Monadi, who heads parliament's education committee, told the semiofficial Iranian Labour News Agency (ILNA) that a teacher would earn a minimum of about Iranian rial (IRR) 80mn ($267) per month if the legislation was enacted, compared with an average of around IRR60mn now.
In recent months, teachers and other educators have reportedly taken to the streets of Tehran, Yazd, Shiraz, Qom, Kerman, and dozens of other cities across Iran to protest against the failure by the government and lawmakers to meet promises to improve their livelihoods.
4.4 Gross fixed capital formation
Capital expenditure is strong
One source of Iran’s above-peer performance is not hard to find: gross fixed capital formation (the sum total of investment in capital goods in an economy – broadly national capex) was above 30% as recently as ten years ago, and in spite of the pandemic is still well above 20%.
Ten years ago US GFCF was 18%, and while it has recovered it is still lower than Iran’s, as is GFCF in the EU, Saudi Arabia and Israel. GFCF is the most significant driver of GDP growth after population changes and urbanisation, and Iran’s GFCF has been largely unscathed by either sanctions or COVID.
A key support for GFCF is the national savings rate – the percentage of GDP saved in one way or another. Iran’s GNS rate is around 38% (source: CIA). Compare that with the EU (22%), the UK (13%) and the US (18%). In GNS terms Iran is a peer of China (44%), Singapore (43%), Switzerland (35%) and South Korea (35%).
Once the COVID-19 effect passes Iran’s non-oil GDP should start growing again at a trend rate of 3-4% – a rate that most of the EU would sell their grannies for.
23 IRAN Country Report February 2022 www.intellinews.com