8 unbelievable facts about Iran's economy

According to the International Monetary Fund, Iran's economy is expected to shrink 6% in 2019, the result of recent sanctions imposed by the United States.

The expected decline follows a decrease of 3.9% in 2018.

A senior official from the IMF warned that inflation in Iran could reach as high as 40% this year.

An annual inflation rate of 50% would be the nation's highest rate since 1980, Bloomberg says.

According to the Iranian Statistical Center, the monthly inflation rate rose to 51.4% as the 12-month rate increased to 30.6%.

With a monthly inflation rate of 50%, a $1 product on January 1 would be cost $130 the next January 1.

Iran isn't alone in its struggles with inflation. According to Trading Economics, five other nations currently have higher inflation rates: North Korea, Argentina, South Sudan, Zimbabwe, and Venezuela, who has the highest in the world at 130,060%.

Unemployment in Iran is expected to hit 15.4% in 2019 and rise above 16% next year, according to CNN. That would more than four times the current US unemployment rate of less than 4%.

Things aren't faring much better in Iran's capital Tehran, where the unemployment rate is 12.2%.

Meanwhile, the youth unemployment rate is even worse, with 28% of the labor force between ages 15 and 24 out of a job in 2018.

Iran reported a $10 billion deficit in the first nine months of its fiscal year, according to VOA News.

To cover the deficit, Bloomberg reported the nation would need oil prices to hit $125 a barrel. Current Brent crude oil prices are just over $60.

As sanctions continue to cripple Iran's economy, the country has resorted to other measures for trading.

According to Bloomberg, some experts estimate that 22 million liters of gas are smuggled out of Iran on motorbikes every day to more lucrative markets.

Additionally, reports suggest that between $2 million and $3 million in cash are being transported from Afghanistan to Iran to help sustain the nation, Bloomberg reported.

China makes up a significant portion of Iran's economic activity, being responsible for 25.6% of Iran's imports and 19.7% of its exports, according to BusinessDay.

In spite of US sanctions on Iran, China has announced it wouldn't significantly decrease its oil purchases with China, BusinessDay reported. India and Turkey made similar announcements.

According to ABC, the prices of food in Iran are rising quickly because of climbing inflation rates.

Red meat and poultry prices jumped 57% since 2018, while vegetable prices rose 47%, ABC reported. Milk, cheese, and egg prices increased 37%.