How much has Iran's economy tanked over the decades?

I fired up ClaudeAi to provide some context below.

The Revolution

The GDP decline around 1977-1978 was caused by the revolutionary unrest and strikes that ultimately brought down the monarchy. By 1978, capital flight reached $30 to $40 billion as the country descended into political chaos.

The economic impact was severe and prolonged. The combination of the revolution and the subsequent Iran-Iraq War (1980-1988) caused devastating losses - research shows the average Iranian lost approximately $34,660 during 1978-1988, equivalent to 40% of real per capita income. The revolution brought fundamental changes: nationalization of all industry and banks, central planning replacing market mechanisms, and state control of prices and subsidies.

The war years were particularly brutal economically. Real per capita income dropped by 45% from the revolution through 1988, urban poverty doubled, and productivity plummeted. Iran went from being a rapidly growing economy that was 26% larger than Turkey's in 1977 to one that has fundamentally underperformed its regional peers ever since.

2010-2012 Drop: International Sanctions

The GDP collapse around 2010-2012 resulted from comprehensive international sanctions targeting Iran's nuclear program. Real GDP growth fell from 5.8% in 2010 to 2.6% in 2011, then plummeted to -7.4% in 2012.

The sanctions were devastating and multi-layered: the US and EU imposed secondary sanctions targeting Iran's oil and financial sectors, while the Iranian rial lost more than 40% of its value between December 2011 and April 2012 . Oil exports were cut in half, and Iran was effectively locked out of the global financial system.

The human toll was severe. GDP per capita decreased by 35% during 2012-2014, while the inflation rate jumped from 20% to 38% during 2011-2013. The middle class was particularly hard hit - research shows average annual per capita income loss of around $3,000 between 2012-2019 due to sanctions . The share of Iranians living in poverty increased significantly as purchasing power collapsed.

Both episodes demonstrate how political upheaval (revolution) and international economic isolation (sanctions) can cause rapid economic contractions in oil-dependent economies.