A/HRC/43/20 F. Impact of economic challenges and sanctions on economic and social rights 44. In previous reports of the Secretary-General, the importance of assessing the human rights situation in the Islamic Republic of Iran also against the backdrop of significant economic challenges, including resource constraints associated with imposed sanctions, has been noted.73 The International Monetary Fund (IMF) estimates the inflation rate for 2019 at 35.7 per cent (consumer price index).74 The 63.5 per cent increase in food prices compared with 2018 has contributed to the rise in the overall inflation rate. 75 In October 2019, IMF downgraded its forecast concerning the economic growth of the country, expecting the gross domestic product to contract by 9.5 per cent instead of the 6 per cent initially forecast.76 It nonetheless predicted that the negative economic growth would end in 2020. In August 2019, the Statistical Centre of Iran recorded a 3.3 per cent employment growth, compared with August 2018, indicating a trend towards increased domestic production and a structural adjustment towards non-oil exports.77 From May to October 2019, the Central Bank of the Islamic Republic of Iran reported a 40 per cent appreciation of the rial against the dollar.78 45. Notwithstanding signs of economic recovery, international trade remains limited under sanctions.79 Several financial institutions that had resumed business with the Islamic Republic of Iran in 2016 after the entry into force of the Joint Comprehensive Plan of Action have either suspended business related to the country or restricted transactions to humanitarian trade.80 Figures released by the European Commission indicate that, between January and June 2019, European Union countries’ exports to the Islamic Republic of Iran dropped by 53 per cent and their imports from the country by 93 per cent, mostly due to sanctions.81 46. Major international corporations have reportedly halted the export of food supplies to the Islamic Republic of Iran, because they could not conclude new export agreements for food commodities given the restrictions on payments. 82 The loss in agricultural production caused by the 2019 floods has also contributed to higher food-price inflation, with the concomitant impact on the ability of persons of lower purchasing power to procure necessary foodstuffs.83 Although the import of agricultural commodities is authorized under the sanctions, they do not include the agricultural equipment, pesticides or insecticides necessary for local production. 84 In September 2019, national households spent 42.7 per cent more on average than the previous year to purchase the same goods and services. 85 In October 2019, red meat and poultry prices increased by 82.2 per cent, vegetables by 74.2 per cent, fruit and nuts by 67 per cent and cheese, milk and eggs by 45.8 per cent. 86 73 74 75 76 77 78 79 80 81 82 83 84 85 86 12 A/HRC/40/24, para. 28; and A/74/273, para. 59. See www.imf.org/en/Countries/IRN. See https://djavadsalehi.com/2019/09/23/good-news-for-iran-from-the-inflation-front/#more-4674. See www.imf.org/en/Publications/WEO/Issues/2019/10/01/world-economic-outlook-october-2019. See www.bloomberg.com/opinion/articles/2019-10-25/iran-s-economic-resiliency-makes-talks-morelikely. See www.al-monitor.com/pulse/originals/2019/10/iran-central-bank-governor-hemmati-rialeconomy.html. See https://djavadsalehi.com/2019/09/23/good-news-for-iran-from-the-inflation-front/#more-4674. See www.reuters.com/article/us-iran-nuclear-food-exclusive/exclusive-global-traders-halt-new-iranfood-deals-as-us-sanctions-bite-sources-idUSKCN1OK1OR. See https://en.radiofarda.com/a/iran-s-trade-with-eu-drops-to-one-quarter-of-last-year/30119417.html; https://ec.europa.eu/trade/policy/countries-and-regions/countries/iran/. See https://uk.reuters.com/article/uk-iran-nuclear-food-exclusive/exclusive-global-traders-halt-newiran-food-deals-as-u-s-sanctions-bite-sources-idUKKCN1OK1P4; and www.reuters.com/article/olamstrategy/singapores-olam-to-make-divestments-of-1-6-bln-over-next-few-years-idUSL3N1ZN2VK. See http://country.eiu.com/article.aspx?articleid=357283419&Country=China&topic=Economy. See https://ofaclawyer.net/. See www.amar.org.ir/Portals/0/News/1398/shg9806.pdf (in Farsi). See www.amar.org.ir/Portals/0/News/1398/shg9807.pdf (in Farsi).