COVID 19: Iran’s Economy Devastating At Record

Iran Economy
Iran Economy

Iran Economy Is Falling Apart

According to a poll conducted in July by the Iranian Students Polling Agency, 8.2% of Iranian households did not consume red meat last year, and 14% of households had red meat just “a few times.” Iranians’ purchases have diminished like never before. Many people have cut down to buying only what they need to survive, to get through the suffocating economic situation in the country.

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Besides endemic corruption and domestic mismanagement in the country both which have made headlines on domestic media recently economy is suffering from sanctions imposed by the United States. The situation has worsened since President Donald Trump’s administration withdrew from the Iran nuclear deal in May 2018.

The minimum wage is approximately $100 to $125 per month, However, Faramarz Tofiqi, head of the labour wage committee of the Islamic Labor Council, believes that the minimum wage must be at least $285 for a household of three people.

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The deal had aimed to ease economic sanctions in return for Tehran’s commitment to curb its nuclear programs, but the U.S. pulling out of the deal resumed the former sanctions, which badly affected Tehran’s already ailing economy. “The spike in the main items of households’ purchase basket including transportation, rent, food, etc. requires the minimum wage of a three-member household to be at least 285 U.S. dollars,” Tofiqi said. He also mentioned that the coronavirus pandemic has also played a role in the dramatic increase in household expenses by adding more consumption of detergent and new items like masks.

Realtors believe that property owners do not follow the government’s orders mainly because the inflation rate of last year was almost twice the government’s prescriptive rent limit. The official inflation rate stated by the Central Bank was 41.2$, the highest rate in the past 25 years, as Mehr News Agency reported based on a letter from Abdonaser Hemmati, head of the Central Bank, to the judiciary in April.

In another move to control the housing market and prices, officials banned the Iranian version of Craigslist to publish the prices in the housing section of the website.