News / Economy

Iranians Hope for Improved Economy in 2014

For Many Iranians, High Hopes for Improved Economic Prospects in 2014i
X
December 19, 2013 5:56 PM
While Iran's nuclear program, presidential elections and talks with the West got most of the attention in 2013, the issue that hits closest to home for most Iranians is the economy, which has been battered by international sanctions. VOA's Jeff Seldin has more.

VIDEO: Some analysts say growing anger over rising inflation, high unemployment paved way for Iran's new diplomatic opening to the West. VOA's Jeff Seldin has more.

While Iran's nuclear program, presidential elections and new talks with the West got most of the attention this past year, the issue that hits closest to home for most Iranians is the economy, which has been battered by international sanctions. Many analysts say it was the growing anger over rising inflation and high unemployment that paved the way for Iran's new diplomatic opening to the West and the world.
 
Back in March 2013, Iranian consumers were furious over nut prices that had jumped ten-fold.
 
"It is the first time in thirty years that we haven't put nuts and pistachios on our Haft-Seen," said Tehran resident Hamid Pourmand. "I can say we boycotted it or simply didn't buy to protest the growing hike in nuts prices."
 
It was the latest in a series of economic blows to a nation that has seen inflation rise 40 percent over the previous year, with unemployment hitting more than 12 percent. For young people, the jobless rate was almost twice as high.
 
As the June presidential election approached, Iranians didn't forget, demanding that the country's next president find a way to circumvent or resolve the sanctions. Many took to the streets to celebrate when reformist-backed candidate Hassan Rouhani won on promises to revive an economy strangled by round after a round of international sanctions over Iran's nuclear program.  
 
As Iran's new leadership prepared for talks in October in Geneva with Western powers on its nuclear program, sinking oil exports caused by the sanctions were costing Tehran an estimated $100 million a day. By late November, a breakthrough was made during talks in Geneva, in which a tentative deal between Iran and world powers over the country's nuclear activities promised up to $7 billion in sanctions relief.
 
For normal Iranian like Tehran jewerly shop owner Ebrahimi, the deal gave rise to a newfound optimism.
 
"Thank God the deal that was made between them was to the benefit of the Iranian people," he said. "All Iranians dreamed of this. They are very happy."
 
But some Iranians remained skeptical. One Tehran resident who spoke with VOA Persian's Straight Talk via Skype, who went by the name Mana, expressed only guarded optimism.
 
"I hope people's daily lives get better, especially people around us and workers who have bad conditions in factories," he said. "Sanctions shut down many factories in Iran. I work with several factories and we see they laid off many workers."
 
According to Matthew Levitt, a scholar with the Washington Institute for Near East Policy, there is good reason for caution.
 
"This will get Iran over the next six months, perhaps. But just as likely it's going to create a crisis of rising expectations among Iranians who expect that a deal means huge relief and the removal of sanctions."
 
As the U.S. Treasury Department's David Cohen warns, unless Iran finalizes a deal, the economic pain will continue.
 
"Foreign banks and businesses still face a choice," Cohen said. "They can do business with Iran or they can do business with the U.S. — just not both."
 
Which means the fate of the Iranian economy likely hinges on how the Geneva accord plays out.

Jeff Seldin

Jeff works out of VOA’s Washington headquarters covering a wide variety of subjects, from the nature of the growing terror threat in Northern Africa to China’s crackdown on Tibet and the struggle over immigration reform in the United States. You can follow Jeff on Twitter at @jseldin or on Google Plus.

You May Like

China May Be Biggest Winner From Ukraine Crisis

Missile sales, oil and gas shipments are among many areas that may drive Beijing and Moscow closer together in coming years More

Obama Faces Chaotic World, Limits of Power

Current foreign policy issues bring into focus challenges for US policymakers who are mindful of Americans' waning appetite for overseas military engagements More

SADC Meeting Lesotho Officials to Resolve Stalemate

Official says regional bloc has been engaged with leaders in Lesotho to resolve political disagreement that led to coup attempt More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
West Africa Ebola Vaccine Trials Possible by Early 2015i
X
Carol Pearson
August 30, 2014 7:14 PM
A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video West Africa Ebola Vaccine Trials Possible by Early 2015

A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video Survivors Commemorate 70th Anniversary of Nazi Liquidation of Jewish Ghetto

When the German Nazi army occupied the Polish city of Lodz in 1939, it marked the beginning of a long nightmare for the Jewish community that once made up one third of the population. Roughly 200,000 people were forced into the Lodz Ghetto. Less than 7,000 survived. As VOA’s Kane Farabaugh reports, some survivors gathered at the Union League Club in Chicago on the 70th anniversary of the liquidation of the Lodz Ghetto to remember those who suffered at the hands of the Nazi regime.
Video

Video Cost to Raise Child in US Continues to Rise

The cost of raising a child in the United States continues to rise. In its latest annual report, the U.S. Department of Agriculture says middle income families with a child born in 2013 can expect to spend more than $240,000 before that child turns 18. And sending that child to college more than doubles that amount. VOA’s Deborah Block visited with a couple with one child in Alexandria, Virginia, to learn if the report reflects their lifestyle.
Video

Video Chaotic Afghan Vote Recount Threatens Nation’s Future

Afghanistan’s troubled presidential election continues to be rocked by turmoil as an audit of the ballots drags on. The U.N. says the recount will not be completed before September 10. Observers say repeated disputes and delays are threatening the orderly transfer of power and could have dangerous consequences. VOA correspondent Meredith Buel reports.
Video

Video Ukraine Battles Pro-Russia Rebel Assault

After NATO concluded an emergency meeting to discuss the crisis in eastern Ukraine, the country is struggling to contain heavy fighting near the strategic port of Mariupol, on the Azov Sea. Separatist rebels are trying to capture the city, allegedly with Russian military help, and Ukraine's defense forces are digging in. VOA's Daniel Schearf spoke with analysts about what lies ahead for Ukraine.
Video

Video Growing Business Offers Paint with a Twist of Wine

Two New Orleans area women started a small business seven years ago with one thing in mind: to help their neighbors relieve the stress of coping with a hurricane's aftermath. Today their business, which pairs painting and a little bit of wine, has become one of the fastest growing franchises across the U.S. VOA’s June Soh met the entrepreneurs at their newest franchise location in the Washington suburbs.
Video

Video Ebola Vaccine Trials To Begin Next Week

The National Institutes of Health says it is launching early stage trials of a vaccine to prevent the Ebola virus, which has infected or killed thousands of people across West Africa. The World Health Organization says Ebola could infect more than 20,000 people across the region by the time the outbreak is over. The epidemic has health experts and governments scrambling to prevent more people from becoming infected. Zlatica Hoke has more.
Video

Video Asian Bacteria Threatens Florida Orange Trees

Florida's citrus fruit industry is facing a serious threat from a bacteria carried by the Asian insect called psyllid. The widespread infestation again highlights the danger of transferring non-native species to American soil. VOA’s George Putic reports.
Video

Video Aging Will Reduce Economic Growth Worldwide in Coming Decades

The world is getting older, fast. And as more people retire each year, fewer working-age people will be there to replace them. Bond rating agency Moody’s says that will lead to a decline in household savings; reducing global investments - which in turn, will lead to slower economic growth around the world. But experts say it’s not too late to mitigate the economic impact of the world’s aging populations. Mil Arcega has more.
Video

Video Is West Doing Enough to Tackle Islamic State?

U.S. President Barack Obama has ruled out sending ground troops to Iraq to fight militants of the so-called Islamic State, or ISIS, despite officials in Washington describing the extremist group as the biggest threat the United States has faced in years. Henry Ridgwell reports from London on the growing uncertainty over whether the West’s response to ISIS will be enough to defeat the terrorist threat.
Video

Video Coalition to Fight Islamic State Could Reward Assad

The United States along with European and Mideast allies are considering a broader assault against Islamic State fighters who have spread from Syria into Iraq and risk further destabilizing an already troubled region. But as VOA State Department Correspondent Scott Stearns reports, confronting those militants could end up helping the embattled Syrian President Bashar al-Assad.
Video

Video Made in America Socks Get Toehold in Online Fashion Market

Three young entrepreneurs are hoping to revolutionize the high-end sock industry by introducing all-American creations of their own. And they’re doing most of it the old-fashioned way. VOA’s Julie Taboh recently caught up with them to learn what goes into making their one-of-a-kind socks.
Video

Video Americans, Ex-Pats Send Relief Supplies to West Africa

Health organizations from around the world are sending supplies and specialists to the West African countries that are dealing with the worst Ebola outbreak in history. On a smaller scale, ordinary Americans and African expatriates living in the United States are doing the same. VOA's Carol Pearson reports.

AppleAndroid

World Currencies

EUR
USD
0.7537
JPY
USD
103.79
GBP
USD
0.6032
CAD
USD
1.0957
INR
USD
60.522

Rates may not be current.