These charts show how Iran's economy is in freefall
Iran's economy is in freefall, with hardline rhetoric masking a brutal reality for the regime and citizens.
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iran's economy is in freefall, driven by the war in the middle east and its own tactics. inflation hit 50% in 2025, then food inflation hit 105% by february 2026. bread and cereals were up 140%, oils and fats up 219% year-over-year. the rial lost 60% of its value after last july's 12-day war against the u.s.
the imf estimates the economy will shrink 6.1% in 2026, with 68.9% inflation. the rial is now around 1.32 million per dollar. iran hasn't published gdp data since 2024. the strait of hormuz blockade and u.s. blockade have cut off most trade — over 90% of annual trade passes through it. oxford economics says that could cut off 70% of iran's export revenues.
infrastructure damage is estimated at $200-$270 billion, per a retired u.s. army colonel. central bank governor abdolnaser hemmati has urged president pezeshkian to restore internet access and pursue a peace deal. the key question is how fast iran can repair its energy and industrial infrastructure.
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