The Economy of Iran
Water Stress, Brain Drain and Structural Problems
Depleted aquifers, droughts, power shortages and the emigration of skilled Iranians threaten long-term growth.
Deep-rooted challenges.
Water
Groundwater depletion and drought hit farming and cities.
Power cuts
Aged infrastructure and underpricing lead to blackouts in summer.
Emigration
Many educated Iranians leave for better opportunities.
Investment
Low investment leaves the economy dependent on ageing capital stock.
A dry lake
Lake Urmia has shrunk dramatically because of water diversion and drought.
Treating sanctions as the only problem
Domestic policy and environmental issues matter.
Key takeaways
- Water is scarce.
- Blackouts occur.
- Skilled workers emigrate.
- Investment is low.
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