Iran and global powers came to a historic agreement exchanging relief from economic sanctions for curbs on Iran’s nuclear program. While this is meant to provide a massive economic boost to Iran’s economy once the sanctions are fully lifted, for now the deal is hurting the economy wrote Najmeh Bozorgmehr:

• Iranians now expect that cheaper, better quality international goods will soon flood the market, causing them to hold off on buying things in the present, hurting the economy.
• Car sales in particular have crashed, declining by 15%, as Iranians realize that they’ll soon have a wider selection to choose from when making a multi-year purchasing commitment.
• It’ll be several months before benefits from the nuclear deal are realized meaning that the prospect of the lifting of sanctions could inadvertently trigger a recession.
• Things aren’t helped by plunging oil prices which are straining the government’s budget.

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Source: Financial Times

Via: Marginal Revolution