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

Koreas Mark 61st Anniversary of War Armistice

Muted observances on both sides of heavily-armed Demilitarized Zone that separates two decades-long enemies More

Judge Declares Washington DC Ban on Public Handguns Unconstitutional

Ruling overturns capital city's prohibition on carrying guns in pubic More

Pricey Hepatitis C Drug Draws Criticism

Activists are using the International AIDS Conference to criticize drug companies for charging high prices for life-saving therapies 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.
Students in Business for Themselvesi
X
Mike O'Sullivan
July 26, 2014 11:04 AM
They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.
Video

Video Not Even Monks Spared From Thailand’s Junta-Backed Morality Push

With Thailand’s military government firmly in control after May’s bloodless coup, authorities are carrying out plans they say are aimed at restoring discipline, morality and patriotism to all Thais. The measures include a crackdown on illegal gambling, education reforms to promote students’ moral development, and a new 24-hour phone hotline for citizens to report misbehaving monks. Steve Sandford reports from Bangkok.
Video

Video Virtual Program Teaches Farming Skills

In a fast-changing world beset by unpredictable climate conditions, farmers cannot afford to ignore new technology. Researchers in Australia are developing an online virtual world program to share information about climate change and more sustainable farming techniques for sugar cane growers. As VOA's Zlatica Hoke reports, the idea is to create a wider support network for farmers.
Video

Video Airline Expert: Missile will Show Signature on Debris

The debris field from Malaysia Airlines Flight 17 is spread over a 21-kilometer radius in eastern Ukraine. It is expected to take investigators months to sort through the airplane pieces to learn about the missile that brought down the jetliner and who fired it. VOAs Carolyn Presutti explains how this work will be done.
Video

Video Treatment for Childhood Epilepsy Heats up Medical Marijuana Debate

In the United States, marijuana is classed as an illegal drug by the federal government. But nearly half the states have legalized it, to some degree. Proponents say some strains of marijuana might have exceptional health benefits, for treating pain or inflammation in chronic conditions such as cancer, multiple sclerosis and epilepsy. Shelley Schlender reports on a strain of medical marijuana developed in Colorado that is reputed to reduce seizures in childhood epilepsy
Video

Video Airbus Adds Metal 3D Printed Parts to New Jets

By the end of this year, European aircraft manufacturing consortium Airbus plans to deliver the first of its new, extra-wide-body passenger jets, the A350-XWB. Among other technological innovations, the new plane will also incorporate metal parts made in a 3-D printer. VOA's George Putic has more.
Video

Video AIDS Conference Welcomes Exciting Developments in HIV Treatment, Prevention

Significant strides have been made in recent years toward the treatment and prevention of HIV, the virus that causes AIDS. This year, at the International AIDS Conference, the AIDS community welcomed progress on a new pill that may prevent transmission of the deadly virus. VOA’s Anita Powell reports from Melbourne, Australia.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.