Iran Economic Monitor, Spring 2020 : Mitigation and Adaptation to Sanctions and the Pandemic
The recession in Iran accelerated in 2019-20 as United States (U.S.) sanctions further tightened. Inflation has gradually declined as the impact of the sharp depreciation of the rial in 2018-19 dissipated but foreign exchange reserves remain limite...
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| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/229771594197827717/Iran-Economic-Monitor-Mitigation-and-Adaptation-to-Sanctions-and-the-Pandemic http://hdl.handle.net/10986/34045 |
| Summary: | The recession in Iran accelerated in
2019-20 as United States (U.S.) sanctions further tightened.
Inflation has gradually declined as the impact of the sharp
depreciation of the rial in 2018-19 dissipated but foreign
exchange reserves remain limited. The growing gross
borrowing needs has increased the government’s reliance on
debt issuance and withdrawals from strategic reserves.
Negative economic growth and high inflation coupled with
COVID-19 (Coronavirus) will put further pressure on
household livelihoods in 2020-21. The current unique
situation of Iran’s economy presents significant downside
risks for the baseline macroeconomic outlook. The country’s
economic and social challenges disproportionately impact the
lower income decile households who have faced significant
economic pressure. Any increase in the value of cash
transfers, along with introducing targeting mechanisms, can
help the poor cope with the social-economic shocks, but
fiscal constraints may limit the scope for significant response. |
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