A recent World Bank assessment has revealed that nearly 10 million Iranians have fallen into poverty over the past decade, a period characterized by international sanctions and fluctuating oil prices. The report, which surfaced quietly on November 15 due to its sensitive nature, highlights the significant impact of U.S. sanctions on Iran's economy, particularly after 2011.
The data indicates a stark increase in the poverty rate in Iran, with the percentage of the population living below the poverty line jumping from 20% to over 28% between 2011 and 2020. This rise in poverty has coincided with an uptick in inequality, which has been especially pronounced among women.
Iran's economic challenges have led to widespread protests in the past year. In response to these domestic pressures and international dynamics, Tehran has increased oil exports following diplomatic engagements with the U.S. Despite these efforts to boost its economy, Iran has faced a GDP contraction of 0.6% annually since the imposition of sanctions.
The World Bank has identified American sanctions as a primary factor contributing to Iran's economic downturn. While the Iranian government has implemented cash transfer programs to mitigate the effects of poverty among its citizens, these measures have not reversed the trend of increasing poverty and inequality.
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