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INSIGHT

Poverty in Iran worsens as international isolation persists

Mardo Soghom
Mardo Soghom

Iran International

Jan 7, 2025, 13:18 GMT+0Updated: 11:55 GMT+0
A little girl sitting on the sidewalk asking for change, Iran
A little girl sitting on the sidewalk asking for change, Iran

As voices associated with Iran’s ruling establishment increasingly advocate for negotiations with the United States, a prominent newspaper has warned that up to 50% of the population is now living below the poverty line.

Aftab News observed that “Given Trump’s return and the persistence of a faction within the country opposing any structural reforms or negotiations to lift sanctions and expand global relations, some economists predict tougher living conditions for the majority of Iranians in 2025.”

The newspaper quoted a lawmaker specializing in budgetary issues, highlighting the stark economic challenges faced by ordinary Iranians. According to the report on Tuesday, the average monthly income for most Iranians is approximately $150, while the minimum budget required for the survival of a small family is around $450. In large cities, rent alone accounts for $250 to $300 per month, further straining household finances.

Professionals and government officials earn slightly higher salaries, but another newspaper reported that even general practitioners are now struggling to make ends meet.

The crisis deepened as Iran's currency, the rial, suffered a dramatic decline, dropping from 600,000 to the dollar to 800,000 since September—a staggering 33% depreciation. This sharp fall immediately eroded the purchasing power of citizens on fixed incomes, as prices surged in step with the weakening currency.

The newspaper estimated that, based on these figures, approximately 50% of the population now lives below the poverty line, defined as having a monthly income of less than $450.

After a hiatus of almost two years, Iran’s Central Bank recently announced the annual inflation rate, claiming that it has dropped to 36%, its lowest level in recent years. Some experts speaking to the media dismissed this figure as misleading and contrary to economic realities in the country.

In another article, Aftab News drew a comparison between Iran and African countries, particularly Morocco, highlighting that without the advantage of oil and gas resources, average monthly salaries in Morocco are around $2,000—more than ten times the average salary in Iran.

The fact that Morocco is both an Islamic country and a monarchy is unlikely to go unnoticed by Iranians reading the article. Many in Iran already reflect with nostalgia on the pre-revolution era, when the country headed by the Shah was considered the leading economic power in the Middle East.

The Islamic Republic newspaper, founded by Ali Khamenei four decades ago, warned on Tuesday that Iran is confronting a hostile regional environment due to the change of government in Syria and called on authorities to remain attuned to public sentiment.

“The only way to navigate the challenging crossroads we are currently facing is for governance to rely on popular support. This support can only be secured by prioritizing the people and respecting their rights in all material and spiritual aspects,” the newspaper said.

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