Iran's economy faces deepening hardship as IMF projects modest growth

Economic analysts say Iran's Misery Index has risen above 61%, reflecting soaring inflation and unemployment that have pushed millions of teachers, engineers, retirees and small‑business owners into poverty despite being employed. International sanctions on oil exports and limited access to global finance have intensified the pressure on households, while public confidence erodes.

The International Monetary Fund (IMF) reports that the global economy has so far absorbed the impact of the Iran conflict, revising its 2024 growth forecast to 3 % and raising it to 3.4 % for 2025. The fund attributes the limited fallout partly to a boom in artificial‑intelligence‑related technology that is boosting demand in countries such as South Korea and Taiwan. It warns that renewed U.S. sanctions and attacks on shipping in the Strait of Hormuz could raise energy prices and inflation, which it now expects to average 4.7 % this year. The IMF anticipates the Hormuz lane to reopen by mid‑July and urges central banks to keep monetary policy focused on price stability.