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Iran’s Economy Can’t Afford Further Military Escalation
The country is in recession and sanctions reduced oil GDP by more than a quarter in 2019.
10 Jan 2020, 10:27 PM IST 
An Iranian national flag hangs outside a store as store keepers, right, wait for customers to their jewelry stores in the Grand Bazaar in Tehran, Iran. (Photographer: Simon Dawson/Bloomberg)
(Bloomberg) --
Iran’s economy has been squeezed by U.S. sanctions, suggesting it can’t afford further military escalation, according to Bloomberg Economics. The country is in recession and sanctions reduced oil GDP by more than a quarter in 2019. The loss of petrodollars and the blow to sentiment have also hit non-oil GDP, where an expansion of almost 5% in 2017 turned into a contraction of more than 4% in each of the last two years.
©2020 Bloomberg L.P.