Economic Struggles Dampen Iran’s Persian New Year Celebrations

The current economic crisis in Iran is severely impacting holiday shopping in Tehran, with many vendors reporting a significant drop in sales ahead of the Persian New Year. High inflation rates and a collapsing currency have drained purchasing power, leading to widespread hardship and diminished consumer activity in traditionally bustling markets.

Economic struggles in Iran have significantly affected the shopping landscape ahead of the Persian New Year, with many stores in central Tehran seeing a drastic decline in customers. The sharp depreciation of the currency and soaring inflation have contributed to a near collapse in holiday spending, prompting a parliamentary vote to remove the finance minister, Abdolnaser Hemmati. Vendors express despair over their situation, reflecting the broader economic malaise.

In Tehran’s Grand Bazaar, Mohsen, an underwear seller, lamented, “business is going very badly. I cannot describe how catastrophic it is.” Many shopkeepers echo his sentiments, stating that sales are at an all-time low as consumers struggle with diminishing purchasing power, essential goods become increasingly out of reach.

Currency fluctuations have severely impacted prices; the Iranian rial is trading at over 920,000 to the US dollar on the black market, a steep increase from under 600,000 rials in mid-2024. Hemmati, who aimed to tackle the economic crisis under the previous administration, has faced challenges worsened by renewed international sanctions since the reelection of US President Donald Trump, intensifying economic conditions in Iran.

As Nowruz approaches, a period marked by shopping for gifts and family gatherings, shopkeepers like Majid report drastic changes in purchasing habits. The cost of toys—a staple holiday item—has more than doubled due to high inflation, consequently driving customers away. Majid noted, “I feel ashamed to sell goods at such high prices.”

Iran’s annual inflation rate reached around 32% in early February, with the World Bank reporting it soared to 44% in 2023. The minimum wage is insufficient to provide a safety net for average Iranians, leading to urgent concerns about affordability and living standards. Akram, a local, left the bazaar empty-handed, stating, “I saw the prices and I couldn’t buy anything. Nothing.”

Strained wallets ensure shoppers like Reza can only afford essentials; he mentioned, “I could only buy a packet of dates.” For families supporting children, the situation is dire, as vendor Ali shared, “No one shops for Nowruz anymore.”

The economic crisis in Iran casts a looming shadow over the Persian New Year celebrations, with consumers unable to afford traditional purchases. The ongoing depreciation of the rial and high inflation have resulted in empty markets and declining sales for shops in Tehran. As economic pressures mount and wages stagnate, many citizens dread the upcoming celebrations, reflecting a broader trend of hardship in the country.

Original Source: www.france24.com