The economic crisis in Iran is hitting families hard, forcing them to make tough choices. But how did it get to this point, and what's next for the Iranian people?
'A Growing Poverty Crisis'
Marjan, a resident of Isfahan, shares a common struggle. Once able to afford dining out twice a month, she now must save every rial to pay the rent. This is the reality for many Iranians as the country's economy continues to deteriorate.
For years, Marjan sold wooden crafts and keyrings on Instagram, like countless other Iranian women. But when the government imposed an internet blackout during the nationwide protests in January, their income vanished overnight.
And it's not just the internet blackout. The economic situation has been dire for years, with the cost of living spiraling out of control. Marjan's sales, once a reliable source of income, have plummeted. She and her husband now contemplate selling their car to stay afloat.
A Nation's Frustration Erupts
The recent protests were a response to this economic despair. Initially sparked by the rising cost of living, the demonstrations soon turned into a broader outcry against the regime, whose policies were blamed for the economic hardships.
Inflation is a significant culprit. Mina, a mother of two in Tehran, vividly illustrates this. Just two months ago, beef cost 7 million rials per kilo. Now, it's more than double. The price of rice has also skyrocketed. These price hikes are not isolated incidents; they reflect a broader trend.
Official data reveals that in the past year, the cost of basic necessities has surged by 60%, while food prices have doubled. This trend is not new; the average family food basket now costs eight times more than five years ago and over 30 times more than in 2016.
A Currency in Free Fall
The rapid decline of the rial is a key driver of this crisis. Since 2018, when the US withdrew from the nuclear deal and reinstated sanctions, the Iranian currency has lost over 95% of its value against the US dollar. This has made imports incredibly expensive, pushing up prices for essential goods.
The protests in Tehran's bazaar in December were a direct response to the rial's plummeting value. The government's brutal suppression of these protests, resulting in thousands of deaths, has further exacerbated the situation.
A Decade of Declining Standards
The past two decades have seen a gradual decline in living standards. BBC Persian's analysis of official data shows that average annual household expenditure has decreased by a quarter in urban areas and nearly halved in rural areas over the past 20 years.
Sanctions imposed on Iran's nuclear program have created a toxic environment of high inflation, low employment, and stagnant or negative GDP growth. This has directly impacted Iranian families, eroding their purchasing power and quality of life.
The Shadow of War
The 12-day war between Iran and Israel last June, with the US conducting airstrikes on Iranian nuclear facilities, has left the economy in a state of suspense. The threat of renewed hostilities looms large, affecting business sentiment and investment.
The recent talks between Iran and the US have done little to alleviate this tension, with Trump's demands and threats of military action hanging over the negotiations.
A Nation's Future in Question
The economic crisis has led to a severe shortage of electricity, natural gas, and water due to underinvestment in infrastructure and mismanagement. These issues, combined with the political instability, paint a bleak picture for Iran's future.
As living standards continue to decline, many Iranians, like Parham from Tehran, believe that the current situation cannot endure much longer. The growing poverty and social instability may lead to further unrest.
But here's the controversial part: Is the international community doing enough to address this crisis? Should sanctions be reevaluated to alleviate the economic burden on ordinary Iranians? These questions spark debate and highlight the complex challenges facing Iran and its people.
