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Iran's economy: battered by sanctions

Change in real GDP, annual %

Source for data, estimates and forecast: World Bank

Iran’s economy will have shrunk by 4.9% over the course of this year and by a further 8.7% during 20201, according to estimates produced by the World Bank2. The country is reeling in the fallout of the Trump administration’s decision to withdraw from the nuclear treaty it signed in 2015 with the Obama administration and other world powers3. The deal had been a boon for the Islamic Republic where the lifting of sanctions contributed to growth of 13.4% during 2017. Once the effects of the latest sanctions are absorbed, World Bank forecasters predict flat growth of 0.1% in 2021 and 1% in 2022.

  1. All periods are fiscal year ends. ^
  2. World Bank. (2019). Iran’s Economic Update. Retrieved from https://tinyurl.com/upwy79e ^
  3. Formally named the Joint Comprehensive Plan of Action (JCPOA). ^