Iranians have been experiencing rising poverty in recent years. Poverty has a direct impact on Iranian households’ livelihoods and food baskets.
According to official statistics issued by the Research Center of the Iranian Parliament, every Iranian has been 36 percent poorer on average between 2011 and 2019.
The first impact of poverty is on household livelihoods, and in the absence of the opportunity to purchase healthy food, people will undoubtedly opt for low-cost, low-quality food that is devoid of nutritional content.
Every year, Credit Suisse Bank produces a report on household wealth per capita in various nations throughout the world. According to this center’s most recent assessment, Swiss citizens are the world’s wealthiest population, with an average worth of $674,000 per adult.
These figures are based on the amount of money saved and the value of a person’s home. The citizens of the United States and Hong Kong are ranked second and third richest people in the world, respectively, after Switzerland. Overall, we may argue that wealth is concentrated in North America and Europe. Africa and Central Asia are also home to the world’s poorest inhabitants.
The average adult wealth in the United States is $505,000, Hong Kong is $503,000, Australia is $483,000, and the average adult wealth in Taiwan, which has the world’s twentieth richest people, is $238,860.
Statistics reveal that the situation in the Persian Gulf countries is not good. The inhabitants of Qatar are the wealthiest in the region, with an average per capita wealth of $146,730, while the people of Iran have the lowest wealth, with an average per capita income of $22,249
Kuwaitis are the region’s second wealthiest people, with an average adult worth of $128,990, compared to $115,476 in the UAE, $87,559 in Bahrain, $68,697 in Saudi Arabia, and $39,499 in Oman.
In the Bank of Switzerland classification, countries with an average wealth of more than $100,000 are considered rich, countries with an average wealth of adults between $25,000 and $100 are counted as middle regions, and countries with an average wealth of between $5,000 and $25,000 are considered as the poorest areas.
As a result, in the Persian Gulf region, the inhabitants of Qatar, Kuwait, and the United Arab Emirates are among the wealthy, while the people of Bahrain, Saudi Arabia, and Oman are among the middle-class, and Iran is among the poor.
In this division, countries like India, Iran, the Philippines, and Africa are classified as “poor” and live in more challenging conditions by international standards.
The historical background of North American and Western European countries reveals that industrial development in these regions has a longer history, and thus the high level of wealth in these countries is not surprising; however, the economic records of some countries, such as South Korea and Singapore, are noteworthy. It is essential since their industrial history is not comparable to American and European countries but owing to wise policies and precise understanding of their economic assets, they have been able to secure a good place among countries.
Ease of doing business, a focus on home advantages, and wide links to other markets have helped countries like South Korea and Singapore build a foothold in international economies with significant economic development in recent decades.
Iran, despite having an abundance of natural riches and a corrupt and mafia-led government, is one of the world’s poorest and impoverished countries, lacking all of the qualities described above.
What is the GDP of Iran?
The petroleum, agricultural, and service sectors, as well as a noticeable state presence in manufacturing and financial services, define Iran’s economy. Iran has the world’s second-largest natural gas reserves and the fourth-largest proven crude oil reserves, and while its economy is rather diversified for an oil exporting country, its economic activity and government revenues are still reliant on oil earnings, making it volatile.
For their 20-year economic vision and five-year growth plan for 2016/17 to 2021/22, the Iranian authorities have embraced a comprehensive policy of market-based reforms. The strategy is built on three pillars: the creation of a robust economy, scientific and technological advancements, and the promotion of cultural excellence. Reform of state-owned firms, the financial and banking sectors, and the allocation and administration of oil income are among its top priorities. The plan predicts an annual economic growth rate of 8%.
Iran is dealing with the consequences of the COVID-19 problem. It remains the worst-affected country in the Middle East and North Africa region, with over 1.7 million illnesses and 61,000 deaths as of mid-March 2021. The number of new, confirmed cases remained stable after stricter lockdown measures were implemented in late 2020, and the number of deaths fell below 100 per day. A progressive easing of lockdown measures, on the other hand, raises the possibility of a fourth wave of COVID-19 cases. Frontline medical professionals began receiving vaccinations in February 2021, but full coverage of Iran’s 84 million inhabitants would take awhile.
For the Iranian calendar year 2020/21, the Gross Domestic Product (GDP) has been estimated at US$628 billion, based on the official exchange rate and a population of around 84 million people. In 2020/21, Iran’s real GDP is expected to expand by 1.7 percent. COVID-19 caused less output loss in Iran than in other countries because the country’s economy had already shrunk by 12% in the previous two years. Both the oil and non-oil sectors recovered faster than predicted in Q3 and Q4-2020, with manufacturing driving the non-oil sector’s revival as exchange rate depreciation made domestic production more competitive.
The COVID-19 pandemic, on the other hand, has had a significant impact on jobs and income in a variety of labor-intensive industries, including high-contact services and the informal sector. Despite the fact that employment levels fell by almost 1 million YoY as a result of the pandemic, discouragement in the labor market, represented in decreased economic participation41.4 percent in Q4-2020dragged the unemployment rate down to 9.4 percent.
COVID-
Iran’s fiscal deficit-to-GDP ratio has risen to its highest level in decades as a result of rising spending and falling oil earnings. From April to December 2020 (9M-2020/21) government revenues were just 55% of the budgeted budget for the entire year. Due to reduced oil export volumes and prices, only 14 percent of expected oil revenue realized. Meanwhile, the pandemic’s higher health and social support costs pushed total spending up by 28% year over year. As a result, the country’s fiscal deficit is expected to rise to over 6% of GDP in 2020/21, with public debt exceeding 50%.
Inflationary pressures grew in 2020/21 as the Iranian rial devalued due to a lack of foreign money and rising economic uncertainty. In February 2021, inflation spiked to nearly 48 percent year over year. Because of US sanctions on accessing foreign reserves, the currency has lost half of its value since April 2020. The rial has regained around 15% of its value as a result of hopes that sanctions will be lifted after the November US elections. The stock market was negatively impacted by exchange rate volatility and government funding operations.
Recent economic trends have added stress to low-income households and slowed the decrease of poverty. From 2017/18 to 2018/19, poverty climbed by one percentage point, reaching 14% before the epidemic. The loss of household income owing to the pandemic, combined with the rising cost of living due to inflation, is expected to push poverty up by 20 percentage points. In response, a variety of social safety measures have been implemented, but while they partially compensate for lost revenues, their real value will diminish as long as inflation remains high.
Iran’s economic prospects are dependent on how the COVID-19 outbreak develops and how quickly the world economy recovers. Due to sluggish vaccination deployment and weak demand from regional trading partners, the country’s GDP is expected to recover gradually. Inflation is expected to fall, although it is still expected to remain above 20% on average in the medium term. Economic pressure on disadvantaged households will persist due to a lack of fiscal space and excessive inflation. Cash transfers that are better targeted can help lower mitigation costs.
The fiscal deficit is expected to remain large in the medium term if oil revenues do not improve. Modest economic recovery would imply slow increase in non-oil revenues as well. Increased reliance on bond issuance, particularly short-term bonds, would result in higher interest and amortization costs. More government debt issuance and asset sales could raise financial contagion risks in the stock market and put more strain on the undercapitalized banking sector.
Is Iran prosperous?
Iran is without a doubt one of the world’s wealthiest countries. With its vast oil, gas, and other natural resources, as well as its young population and access to open seas (via the Persian Gulf), one would expect the country to have considerable growth and have no poverty or unemployment issues.
Is Iran a decent place to visit?
Iran is ranked 118th out of 153 countries in the 2020 study, just above the “unhappiest” quintile. The index’s scores are rated among the countries, both overall and by category.
Is Iraq a wealthy nation?
Iraq is one of the world’s most oil-rich countries. At the end of 2017, the country had the fifth biggest proved crude oil reserves, with 147.22 billion barrels.
Is Iran a wealthier country than Saudi Arabia?
According to Capgemini’s World Wealth Report, almost 72 percent of HNWIs have invested in cryptocurrencies.
According to Capgemini’s calculations, the rapid rise of millionaires has made Iran the 14th richest country in the world and the wealthiest in the Middle East. Iran is now wealthier than Saudi Arabia, which is ranked 17th with 210,000 millionaires.
Extreme wealth is nothing new in Iran. Because of their opulent lifestyles, children of the wealthy were dubbed “aghazadeh” or “noble-born” in the 1990s. Images of their automobiles and vacations are frequently shared on Instagram these days, with many of them being reposted by the channel Rich Kids of Tehran.
Children of the country’s kings are among them. A great-granddaughter of Iran’s supreme dictator, Ayatollah Khomeini, Atefeh Eshraghi, was once pictured in London clutching a $3,800 purse. Following allegations of nepotism, Kambiz Mehdizadeh, the son-in-law of Iran’s outgoing president, Hassan Rohani, resigned from a high government position in 2018.
However, there are evidence that Iran’s administration is reining in its aghazadeh. Instagram posts with a lot of flash have been less popular in the last year. Iran is even attempting to deport Sasha Sobhani, a popular Instagrammer who was jailed in Spain on money laundering accusations.
The fortunes of Iran’s millionaires, on the other hand, contrast sharply with the country’s impoverished and the wider economy. According to the Islamic Labour Council, more than 60% of Iran’s population lives in relative poverty due to rising living costs. There are no official government poverty statistics.
Following Donald Trump’s decision to withdraw from the Iran nuclear deal in 2018 and reimpose sanctions, prices of ordinary commodities skyrocketed. A year later, violent protests against growing living costs erupted across Iran’s major cities.
With inflation approaching 50%, such prices have grown even more. The Covid-19 pandemic, which struck Iran before much of Europe or America, has exacerbated unemployment and poverty in the country.
The news that Iran’s wealthy are becoming wealthier could cause problems for Ebrahim Raisi, Iran’s next president, who will take office in August after a resounding victory in June’s presidential elections.
“Many Iranians are criticizing the regime and are increasingly expressing anger over the stark divide between rich and poor, as well as the economic inequality between the elite and ordinary people,” says Majid Rafizadeh, an Iranian-American political scientist and president of the International American Council.
Rafizadeh adds that the record low voter turnout in June’s elections reflects the public’s dissatisfaction with the government.
President-elect Raisi has backed talks in Vienna for a new nuclear deal with the United States. If the talks go well, sanctions may be lifted, allowing international investment to flow back into the country, boosting the economy as a whole.
But, as Rafizadeh points out, sanctions relief is unlikely to be a quick fix: “Iranian politicians usually attribute the country’s widespread poverty to foreign forces, such as US sanctions on Iran’s nuclear program and financial system.”
“However, extensive financial corruption, cronyism, and nepotism must be seen as major causes to the high levels of poverty.”
Is Iran wealthier than the United Kingdom?
make 2.2 times the amount of money As of 2017, Iran’s GDP per capita was $20,100, while the United Kingdom’s GDP per capita was $44,300.
Is Iran the same size as Turkey?
Turkey is about 783,562 square kilometers, while Iran is about 1,648,195 square kilometers, making Iran 110 percent larger than Turkey. Turkey has an estimated population of 82.0 million people (2.9 million more people live in Iran).
Is Iran the same size as Pakistan?
Pakistan covers 796,095 square kilometers, while Iran covers 1,648,195 square kilometers, making Iran 107 percent larger than Pakistan. Meanwhile, Pakistan has a population of 233.5 million people (148.6 million fewer people live in Iran).
What is Iran’s literacy rate?
The percentage of adults aged 15 and above who can read and write a brief straightforward statement about their daily lives is known as the adult literacy rate. The literacy rate in Iran in 2016 was 85.54 percent, up 0.84 percent from 2014.