The twin economic shocks triggered by low oil prices and COVID-19 containment measures will have a disruptive impact on renewable energy in 2020 and 2021. Further down the line, however, it will galvanise sector growth, as investors increasingly seek to diversify away from risky portfolios. Prospects will improve further if governments maintain their commitments to sustainable energy and improve their investment climates.
The ups and downs of Iran’s economy
On a roller coaster ride for the past thirty years, Iran’s economy is once again in crisis mode. After a modest recovery following the signing of the Joint Comprehensive Plan of Action (JCPOA) and lifting of the UN oil embargo of 2012–16, the economic downturn which began in 2018 after the US implemented economic sanctions is set to worsen significantly this year and into next. Despite the adverse impact this will have on the Iranian people, the end goal of US sanctions – to topple Tehran’s government or force it into a new President-Trump-approved nuclear deal – will not work, in part because Iran has built a substantial balance of payment buffers and diversified key parts of its economy.
