Page 6 - IRANRptOct22

a revival of the 2015 nuclear deal, or JCPOA.
The rial closed on the Tehran market at a worst-ever rate of IRR332,500 to the USD on October 3 as the US currency continued to surge past its rivals, cementing its place as the global bastion of financial security amid wobbling world markets.
Both the protests and the lack of optimism regarding any possible reinstatement of the JCPOA—and consequent lifting of US sanctions on the Iranian economy—are taking a toll on Iran’s economy, with the former prompting the authorities to bring in sweeping internet shutdowns that have paralysed much of the country’s digital economy.
Iran’s official annual inflation rose 13.2 pp to a record 52.5% in June from 39.3% in May, the Statistics Center of Iran (SCI) announced on June 28. Price growth in food, beverages and tobacco grew by 32.2 pp to 81.6% in June, while nonfood goods and services prices moved up by 2.8 pp to 36.8%.
Social tensions in Iran have risen amid surging inflation, including steep hikes in food prices, and a series of strikes mounted by workers including teachers and bus drivers in Tehran.
Protests over water scarcity in Iran have become quite commonplace in the past two or three years, with the impacts of climate change combining with questionable water management to leave many regions exposed to a severe lack of water, especially given persistent drought that is afflicting the country.
In June, Abadan, in southwestern Iran, recorded one of the hottest days on Earth since records began, registering 52.2°C (126°F).
Water difficulties and associated protests have also been seen in locations such as Shahrekord in central Iran and Hamedan in western Iran in recent weeks.
Looking ahead, the World Bank in the June edition of its Global Economic Prospects report has upgraded its 2022 GDP growth forecast for Iran to 3.7% from the 2.4% it anticipated six months ago, citing higher oil prices. Nonetheless, the institution observed the threat that drought poses to Iran as well as a growing number of cost-of-living protests which saw its official inflation rate remain elevated.
6 IRAN Country Report October 2022 www.intellinews.com