Economic Turmoil Diminishes Holiday Spirit for Iranians Ahead of Nowruz
Economic hardships in Iran have severely impacted consumer spending as the Persian New Year approaches, leading to a significant decline in market activity. The Iranian rial suffers substantial depreciation, contributing to soaring inflation rates. The recent removal of Finance Minister Abdolnaser Hemmati signals growing frustration within the government over the economic crisis, leaving many citizens unable to afford traditional holiday purchases.
In Tehran, the customary bustling atmosphere of central markets ahead of the Persian New Year has markedly diminished due to ongoing economic troubles. The Iranian economy is suffering from a collapsing currency and soaring inflation, leading to a dramatic reduction in consumer spending. Following this economic downturn, the Iranian Parliament has voted to dismiss Finance Minister Abdolnaser Hemmati.
Mohsen, a vendor in Tehran’s Grand Bazaar, lamented, “business is going very badly. I cannot describe how catastrophic it is.” Other vendors echoed similar sentiments, noting that sales have plummeted as people’s purchasing power has diminished significantly. The Iranian rial’s exchange rate has skyrocketed, currently surpassing 920,000 to the US dollar in the parallel market, compared to less than 600,000 in mid-2024.
Minister Hemmati, who was appointed with the responsibility of addressing the economic crisis exacerbated by longstanding international sanctions, now faces removal amidst heightened economic distress. Many Iranians are pessimistic about their future economic prospects, particularly with President Donald Trump reinstating his stringent policies towards Iran since resuming office this January.
Typically, Iranians engage in shopping for gifts and new clothing in preparation for the Nowruz celebrations, which commence in late March and coincide with the Muslim holy month of Ramadan. Majid, a toy store operator at the Grand Bazaar, attributed the decline in sales to inflation, noting that prices for his products have more than doubled from last year.
Iran’s official statistics indicate an annual inflation rate of 32 percent as of early February, exacerbated by a World Bank report stating inflation reached 44 percent in 2023, compared to 30 percent in 2019. As of the end of March, the minimum wage was reported at 111 million rials, translating to approximately $120.
Akram, a 60-year-old shopper, departed the Grand Bazaar without making any purchases, stating, “I saw the prices and I couldn’t buy anything. Nothing.” Another shopper, Reza Esmailian, remarked that he was only able to afford a packet of dates, a vital food item during Ramadan. Vendor Ali shared the challenges of supporting his family, saying, “I have three children and I struggle to provide for them.”
The economic landscape in Iran has significantly worsened ahead of the Persian New Year, with consumers facing soaring prices and reduced purchasing power. The dismissal of Finance Minister Hemmati reflects the government’s inability to mitigate the economic crisis effectively. As traditional holiday shopping declines, many Iranians express concerns about their ability to provide for themselves and their families during this crucial festive period.
Original Source: www.france24.com
