Tehran, July 11 -- Iran's already fragile economic outlook has been further weakened by the war, with the country facing a sharp contraction, surging inflation and growing pressure on household incomes.
According to the International Monetary Fund (IMF), Iran's economy is expected to shrink by 6.1% in 2026 after an estimated contraction of 1.5% last year.
Consumer-price inflation, already above 50% in 2025, is forecast to accelerate to an average of 68.9%, reports Iran International.
A shrinking economy means lower output, weaker business activity and fewer employment opportunities. On top of this, Iran's inflation rate, nearing 70%, is rapidly eroding the value of incomes and savings.
For many Iranian households, the result is a double...