How sanctions and the pandemic affect Iran's economy

Abstract

Iran has been under international sanctions of one kind or another for four decades, but its economy has never been as bad as it is now. In May 2018, the Trump administration began its campaign of maximum pressure to force Iran to renegotiate the Iran nuclear deal. This deal, officially known as the Joint Comprehensive Program of Action (JCPOA), was signed on July 2015 but only eased the sanctions for two years. During those two years, the economy rebounded but then fell into recession. Economic growth turned from 13 percent in 2016 to minus 7.6 percent in 2019. And now, since February 2020, the country has been hit by the Covid19 pandemic. The two shocks together have put unprecedented pressure on the lives of ordinary Iranians.