Iran's economy shrinks sharply amid war, soaring inflation and currency collapse
Iran's economy fell sharply in the first quarter of the Persian year, with inflation near 90% and the rial hitting historic lows as the war escalates.
Data from Iran's Statistical Center show that the economy contracted sharply in the first quarter of the Persian calendar, coinciding with an annual inflation rate of roughly 89% and a plunge of the rial to historic lows. The downturn follows the war that started on 28 February, when the United States and Israel launched attacks on major Iranian industries, including petrochemical and steel plants that together account for billions of dollars in exports and thousands of jobs.
The oil and gas extraction sector suffered the steepest decline, with industry and mining also shrinking, while the agricultural sector managed a small increase. President Masoud Pezeshkian, speaking at the BRICS Economic Forum in New Delhi, described the situation as entering a "much more difficult and dangerous" phase because of the conflict. The combined effect of war damage, soaring prices and currency devaluation is deepening the country's economic crisis.
