Virus takes toll on Iranian economy ahead of Nowruz

The Persian new year is just around the corner, but there are very few shoppers at Tajrish bazaar, one of the capital's main business hubs. Empty sidewalks and idle shopkeepers are unheard of in Iran at this time of the year. But the new coronavirus outbreak has forced millions of Iranians to stay at home, and that is wreaking havoc on many businesses at a time of the year when sales would normally boom.

Many Iranian merchants, vendors and manufacturers depend on the holiday season to make profits, as the U.S sanctions have hit the ailing economy hard, shrinking the people's purchasing power significantly.

Now the new coronavirus has made things even worse.

"As a whole it has a terrible impact on our country's economy," says Hamid Nabizadeh, a software developer who has been working from home since the outbreak started.

"Many jobs that need the customer to be present and talked to in person have been virtually shut down. You can't go to the customers and even if you do, they are not willing to buy goods they can't see."

While many traditional shops are struggling, for some online businesses the new virus means a new opportunity.

"It's been really good for some businesses, for example those in the online services sector, such as online food delivery services and online shops. Their business is a bit more profitable, because people can no longer go and do their shopping in person," says Nabizadeh.

Behnam Tavakkoli, an entrepreneur who owns a printing company, says businesses selling anything other than essential items are in serious trouble.

"If you produce anything other than staples and essential goods, nobody will buy from you and you'll be left with products with no consumers. This leads to unemployment of thousands of people, recession and high prices."

Tavakkoli believes if the situation continues for more than another three or four months, the consequences will be grave.

Iran has been by far the Middle East country worst affected by the virus, with almost 1,000 deaths.

The virus causes only mild or moderate symptoms for most people but can be severe in some cases, especially older adults and people with existing health problems.