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Iranian Economic Difficulties

Over recent years it seems that the Iranian Government has neglected to properly handle their countries economic well-being. Outside shocks and weak economic performance have recently plagued this country. “a marked deterioration in the external environment stemming from the intensification of trade and financial sanctions, have weakened the economy.”

It seems there have been revisions to some sanctions due to Irans agreement on nuclear warfare and the rial, Iran’s currency, has seemed to become increasingly stable.

The IMF has expressed its concerns in Iran despite the seemingly optimistic outlook used by President Rouhafi and they predict future growth annually in 2014 near 1 to 2 percent.

Iran’s inflation rate has decreased from an annualized 45 percent to less than 30 percent currently. Subsidies artificially bolstering oil and food in the country have also eaten away economic conditions in Iran who has struggled to sell their oil and the U.S. has threatened to come down on anyone like “a ton of bricks” if countries undermine them. There have been recent talks arousing rumors of a deal with Russia and this comes as one additional dilemma we face with Russia yet again. Hopefully future talks give birth to increased compliance with U.S. demands to a point where economic conditions can get better and Iran’s inflation can come down to reasonable levels.





  1. gjeong gjeong

    Do you know what exactly weakened the economy in Iran?
    Iran is one of the most important countries in the middle east area. If its economy weakens, then it will directly affect other countries economies that are nearby. I guess one of the options that they can consider is to talk with the U.S. If they ease their military movements or power, then they may be able to get some aid from the U.S. However, will the government allow it?

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