Iranian state media often report that 30 million people in the country live below the poverty line. But is this figure accurate? Ground-level observations and statistics suggest a much grimmer picture, showing rising poverty and a sharp decline in purchasing power that is causing significant concern among the population.
Inflation has visibly impacted essential living expenses, including housing, transportation, food, education, and healthcare. As costs soar, more and more people find themselves unable to afford even basic necessities. Some individuals not only remain unemployed but also receive no government support, further exacerbating the issue.
The Minister of Cooperatives, Labor, and Social Welfare, Ahmad Meydari, has stated that inflation is the primary driver of rising poverty in the country. He cited data from Iran’s Statistical Center and reports from the Parliament’s Research Center, which indicates that between 2019 and 2022, poverty rates remained stable, with around 30% of the population—approximately 25.4 million people—struggling with poverty. Furthermore, extreme poverty affects about 6% of the population or roughly 5 million people.
Meydari added that while unemployed individuals are more vulnerable to extreme poverty, those living in absolute poverty still have some income but not enough to cover basic living expenses. The reality is that under Ebrahim Raisi’s administration, prices have increased by 114% in the first two years, with further rises in the third year. This inflationary spiral has severely impacted people’s lives.
The Pezeshkian government has outlined plans to eliminate absolute poverty, claiming to address the 30% of the population currently living below the poverty line. However, the World Bank has issued warnings about Iran’s growing poverty crisis, emphasizing the need for urgent action.
While the people of #Iran suffer from hunger and poverty, the regime invests millions in religious influence abroad. Watch and judge the admissions of this #IRGC official pic.twitter.com/XXXYj2dvRS
— NCRI-FAC (@iran_policy) September 8, 2023
World Bank’s Warning on Poverty in Iran
In the mid-2000s, according to official statistics, around 12% to 15% of the population lived in absolute poverty. However, by the mid-2010s, this figure had risen to 20%. Following the second wave of inflation in 2018, poverty increased at an even faster pace, reaching 30% by 2019.
The Minister also highlighted the complexity of tackling absolute poverty, noting that macroeconomic factors such as inflation and economic growth play a decisive role. Nonetheless, Meydari was clear that economic growth alone or simply controlling inflation would not eradicate absolute poverty. The first step, based on the experience of other countries, is to address extreme poverty.
Extreme poverty refers to situations where individuals cannot even afford enough food, while absolute poverty encompasses the inability to meet basic needs such as food, clothing, housing, and transportation. According to statistics from Iran’s Statistical Center, the rate of extreme poverty in the country is around 6%, affecting roughly 5 million people.
Why are ordinary #Iranians slipping under the #poverty line on a daily basis? pic.twitter.com/WV4ZRiZNua
— NCRI-FAC (@iran_policy) December 13, 2023
Discrepancies in Official Reports on Poverty
Despite the official claims from the government, recent reports from state media indicate far worse figures. According to the World Bank’s assessment in November 2023, 10 million Iranians were living in absolute poverty, while 40% of the population was at risk of falling into poverty.
The Ministry of Welfare’s 2023 data also painted a grim picture, suggesting that 40% of Iran’s population was below the absolute poverty line, equating to 28 million people. Meanwhile, other reports from May 2022 claimed that over 42 million Iranians were living in absolute poverty. In March 2024, Khabar Online reported that the sharp decline in the value of the national currency had left more than 60% of the population below the poverty line.
In August 2023, a state-affiliated economist, Hossein Raghfar, stated that 50% of the population was living in absolute poverty. The shocking inconsistency in these figures raises serious questions. Not only is there confusion about the exact number of people living below the poverty line, but the conflicting reports also highlight the extent of misinformation being spread by official media.
As poverty continues to rise, it’s evident that there is little hope for economic improvement under current policies. Not only is the government failing to reduce the number of people living in poverty, but the population living under the poverty line is increasing day by day. In other words, the underlying issue persists and grows worse, because the root cause—the regime of the mullahs—remains in place and continues to perpetuate poverty.
#Iran News in Brief
Terrified of public disdain towards the regime’s #hypocrisy and corruption, an MP said today that the regime officials’ offspring should live in Russia and China instead of Western countries. https://t.co/YcnQ5F7ERQ…#آقازاده pic.twitter.com/uNpmCe4SZc
— NCRI-FAC (@iran_policy) May 29, 2022
Wealth vs. Poverty in Iran
What makes Iran’s poverty crisis even more alarming is the contrast between the country’s vast natural resources and the impoverishment of its people. According to official data, Iran has 56 times more oil and gas reserves than the entire European continent and 38 times more mineral wealth. Despite this, a large portion of Iran’s population cannot even afford the most basic necessities of life.
The stark disparity between Iran’s wealth and the suffering of its people underscores a deeper issue. It is evident that to eliminate poverty, the root causes—namely, the ruling regime—must be addressed.