Crisis in Iran: five signs of economic collapse from Axios
An analytical review by Axios highlights five key indicators of the economic crisis in Iran: the rial's collapse to 2.02 million per dollar, inflation at 87.9% (food prices up 128%), a decline in living standards, a collapse in oil exports due to the US blockade, and a 5.4% GDP contraction. President Pezeshkian hinted at the need to end the war.
An analytical review by Axios, as reported by Kursor, highlights five key indicators of a deep economic crisis in Iran amid military operations, the US naval blockade, and new sanctions by the Trump administration. The first signal is the collapse of the national currency: the rial's exchange rate on the free market fell to 2.02 million per dollar, compared to about 1.65 million before the war. The second is a sharp spike in inflation: the IMF had forecast 69%, but the Iranian Statistical Center recorded July inflation at 87.9% year-on-year, with food prices rising by more than 128%. The third sign is a catastrophic decline in living standards: Iranians are massively cutting spending on food and working without days off, giving up meat and fruit. The fourth is the collapse of oil exports due to the US naval blockade, which, according to the Central Bank, has fallen to virtually zero. The fifth is a labor market downturn and a 5.4% GDP contraction instead of expected growth. Despite the pressure, experts note the historical resilience of the Iranian leadership, but President Masoud Pezeshkian hinted at the advisability of a swift end to the war while the country maintains a position of strength.