Iran's Economy on the Brink: Poverty Skyrockets Amid US Sanctions and Pandemic

Tehran's economy has collapsed in the face of US sanctions and the pandemic, pushing millions of Iranians into extreme poverty. The official annual inflation rate is 46.2 percent, the highest in decades, and youth unemployment stands at 16.5 percent. The price of food and drink has increased dramatically, with the cost of chicken, rice, and eggs almost doubling over the past year. Millions rely on monthly state payouts and donations from charities to survive, but even these lifelines are insufficient for many.

Key Takeaways:

• Over 60 percent of Iranian society lives in relative poverty, with workers' wages covering only a third of their living costs.
• Half of those who live below the poverty line struggle with extreme poverty, with the number increasing fivefold since the US reimposed sanctions in 2018.
• Official annual inflation rate is 46.2 percent, compared to less than 10 percent in May 2018.
• Youth unemployment stands at 16.5 percent, with many losing their jobs due to the pandemic.
• The price of chicken, rice, and eggs has almost doubled over the past year, while the prices for beans and vegetable oil have increased by about three times.
• Iran's smart cash payment system covers about half of the 83 million population, targeting those with no source of income.
• The poorest families, with an average of four members, are entitled to a minimum of 5.7 million rials each month.
• Many Iranians rely on state payouts and charities to survive, with some families struggling to afford basic necessities like bread and potatoes.

Statistics:

• 60% of Iranian society lives in relative poverty (Faramarz Tofighi)
• 50% of those below the poverty line struggle with extreme poverty (Faramarz Tofighi)
• Official annual inflation rate: 46.2% (five times higher than in May 2018)
• Youth unemployment: 16.5% (an increase due to the pandemic)
• 83 million population covered by Iran's smart cash payment system (aimed at those with no source of income)
• 5.7 million rials minimum monthly payment for the poorest families (average four members)
• 370 families supported by charity Abid Vafaing manesh in Zahedan region
• 12 sq m shelters house many families in deprived regions

Sources:

• Faramarz Tofighi, head of the wages committee of the Islamic Labour Council
• Saeed Laylaz, reform-minded economist
• Ghodrat, janitor in affluent northern Tehran
• Abid Vafaing manesh, charity supporting 370 families in Zahedan region
• Iranian government data on inflation and youth unemployment