US permission deal blow to Iran’s economy as Trump’s resolution to retrace his steps from the nuclear deal would cost Iran billions in foreign investment, cut growth, prevent tourists, and dispossess its citizens of business opportunities. Hassan Hakimian, director of the London Middle East Institute at SOAS said that this has been a disappointment on numerous levels. It is going to be setback as it will have a negative impact on the economic expectation on Iran and specifically the youth.
Analysts had anticipated a huge economic boom in Iran after consent was lifted in 2016 in exchange of Iran overrule its nuclear program. While that could not become a reality, rising foreign investment and tourism did provide support to the already fragile economic recovery.
Economic expansion penetrated 6.5% in 2016 after going down by 1.6% the previous year. Inflation plummeted into single digits in 2016, oil production increased and spearheaded and the IMF and was foretelling an increase in the living standard.
Hakimian also said that people did sense the welfare of the deal definitely but was falling short of their expectations. Then emanated a drawback: Growth slowed to 3.3% last year, unemployment rose, and inflation snapped above 10%. The Iranian Rial plummeted against the US dollar in recent months. The currency has gone astray nearly 23 percent in its value over the past year and media reports indicate a slowdown has been very steep on black market exchange.Read Full Article