In an economically struggling Tehran neighborhood near Imam Hussein Square, secondhand store owners like Abbas, 60, and his son Asgar, 32, languish with few customers. Years of U.S. sanctions, compounded by domestic economic mismanagement, have left many Iranians economically distressed.
Nearly everyone interviewed in Tehran described a pervasive sense of economic decline. Roya, 25, who owns a small cosmetics store, lamented reduced customers and scarce imported goods. High-end French and German brands are now affordable only for the wealthy.
Tehran’s streets feature aged vehicles, remnants of joint ventures halted by renewed U.S. sanctions after President Trump withdrew from the 2015 nuclear agreement, stifling foreign investment. Despite enduring sanctions, Iran’s economy has managed modest growth due to increased oil sales to China, but inflation remains high and the currency weak.
Middle-class Iranians watched their real incomes rise from the 1990s until 2010 but now face inflation and a plummeting currency. The rial to dollar exchange rate has worsened from 8,000 in 2000 to around 42,000 officially, and closer to 60,000 on the street.
The government is introducing the tomam to supplant the devalued rial. In a south Tehran mosque during recent presidential voting, residents voiced frustrations over sanctions and economic hardship. Mina, 62, pleaded for the next president to address their struggles with rent and unemployment.
Many lower-income Iranians, spending roughly 70% of their income on rent, find themselves in dire situations. Abbas, the chair salesman, stated Iran’s wealth doesn’t reach the citizens. Workers like Mohamed Reza Moharan Zahre, 36, who had dreamt of becoming a pilot, now consider emigration to find better opportunities.
Seddighe Boroumand, 62, a school janitor, recounted losing two children due to financial inability to afford medical care. “We ask the politicians to end the suffering,” she said, echoing a common plea.
Original Story https://www.nytimes.com/2024/07/04/world/middleeast/iran-economy.html
Category : Embargoes and Sanctions,Iranian Rial (Currency),Income Inequality,Trump, Donald J,Iran,Tehran (Iran),United States,United States International Relations,Elections
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