Iran’s Resilience Gap: Why Households Are Under Pressure (opens original article in a new tab)

Iran's economy shows resilience with 3.8% annual growth, but households face pressure due to inflation, declining purchasing power, and rising poverty rates, highlighting the gap between macroeconomic stability and household welfare.

• Iran's economy grew at 3.8% annually from 2021-2025, but private consumption declined by 0.2% per year.
• Household resilience is weakened by seven years of inflation above 30%, leading to a poverty rate exceeding 40% in 2025-2026.
• Government consumption increased while private consumption fell, indicating households lost purchasing power despite economic growth.
• Policy recommendations include controlling inflation, inclusive growth, and social support to rebuild household resilience.