The Impact of International Sanctions on the Lifestyle of the Iranian People

Since the Iranian Revolution of 1979, various sanctions have been imposed by the United Nations, the European Union, and the United States against Iran. An extensive body of research on the economic impact of international sanctions on Iran has examined the issue in terms of trade (imports and exports), investment (inflows and outflows), and the development of the oil industry. This study attempts to analyze these within one inclusive picture to better show their combined effects on the Iranian economy. The information shows that the sanctions have significantly affected Iran's economy. The GDP growth rate fluctuated markedly over the period. Three significant events occurred between 2005 and 2018. In 2006, international sanctions were imposed. In 2016, when the nuclear deal was implemented and sanctions were lifted, the GDP growth rate started to rebound from approximately -0.2% in 2015 to almost 13% in 2016. In 2018, when US sanctions were reinstated, the GDP growth rate showed negative growth. In 2019, the GDP growth rate also showed negative growth. Thus, sanctions affected fiscal policy in Iran. As government expenditure decreased due to the tight fiscal policy, the economy has been hampered.