The post-Raishi Iran’s economy continues to struggle with the same issues that plagued it during its presidency. Since his death in May 2024, the nation has faced sustained inflation, increased debt and crippling sanctions that limit the potential for Iran’s economy in 2025.
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Economic Challenges – After Rise: Inflation, debt, sanctions and limited growth
Inflation and currency crisis
The post-Raisi Iran’s economy shows little improvement in inflation, reaching 47% in the fiscal year before it closed in March 2024. RAISI has lost about 94% of its value since 2018, and its exchange rates have plummeted from Riri 230,000, when Raisi had been appointed to Riri 650,000 by the time of his death. This currency devaluation has largely devastated purchasing power at the time of writing and has increased economic uncertainty.
Government debt and liquidity issues
The impact of Raisi’s death on Iran’s economy did little to reduce the massive government debt accumulated during his tenure. Iran’s economy rose 56% year-on-year by March 2025 after Raisi wrestled with debt to the banking system.
President Raisi claimed in April 2024:
“Improved liquidity in Iran is one of the signs of the country’s economic growth.”
Despite this claim, during his presidency, liquidity almost doubled, reaching around 80,000 trillion rials ($123 billion), more than 30% of Iran’s GDP, fueling inflation more, causing long-term economic problems.
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Petroleum exports, trade deficits, economy
Iran’s post-oil exports remain obstructed by international sanctions. The country faced a non-oil trade deficit of $18 billion in last fiscal year. Oil revenues were less than $36 billion, and exports were primarily made at large discounts to Chinese refineries.
Iran’s economy, RAISI, faces important structural challenges with few signs of improvement in 2025. More precisely, the International Monetary Fund states that the Iranian government’s debt equals 30.5% of GDP, equivalent to $118 billion, 2.5 times the government’s annual budget.
The central bank reported in April 2024:
“Despite Raisi’s campaign pledge to stop government borrowing, the state’s debt to the banking system has increased significantly. Since Raisi came to power, the government’s debt to domestic banks has almost doubled.”
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Economic reform remains elusive as Iran’s inflation and currency devaluation continues to decline. Iran’s economy in 2025 appears to be bleak as the leadership transition has not yet been translated into meaningful policy changes that can address these entrenched financial issues.
