Iran Economic Monitor, Fall 2021 : Adapting to the New Normal - A Protracted Pandemic and Ongoing Sanctions
Iran’s economy is gradually recovering following a lost decade (2011–2020) of negligible economic growth. Less stringent COVID-19 restrictions, adaptation to the new normal - reflected in a recovery in consumption, and more favorable oil sector con...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/undefined/911661640286887490/Iran-Economic-Monitor-Adapting-to-the-New-Normal-A-Protracted-Pandemic-and-Ongoing-Sanctions http://hdl.handle.net/10986/36785 |
| Summary: | Iran’s economy is gradually
recovering following a lost decade (2011–2020) of negligible
economic growth. Less stringent COVID-19 restrictions,
adaptation to the new normal - reflected in a recovery in
consumption, and more favorable oil sector conditions have
driven a four-quarter rebound after June 2020, albeit from a
low base. The rebound was boosted by the rapid rollout of
COVID-19 vaccines in the second half of 2021/22. However,
limited accessible foreign exchange reserves, due to ongoing
US sanctions, have led to exchange rate volatility and a
surge in inflation. The economic rebound has also been
predominantly jobless which coupled with high inflation has
translated to declining household welfare, especially among
the bottom income deciles who were also disproportionately
impacted by the pandemic. Meanwhile, adverse climate change
events such as droughts and record temperatures have led to
water shortages and energy blackouts which have brought the
socio-economic urgency of these challenges to the fore. |
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