What Is the Impact of Internet Shutdowns on Iran’s Economy?

In Iran, the internet has been shut down since the evening of January 8, when anti-government protests spread across the country. In recent years, the Islamic Republic has repeatedly restricted internet access to limit communication during periods of unrest. Between 2016 and 2024, Iran recorded 72 internet shutdown and network throttling incidents, mainly during public protests.

With the country’s economy already under pressure from long-term sanctions, political instability, and widespread corruption, internet shutdowns have further deepened existing problems. Although the full economic impact of internet shutdowns on Iran is nearly impossible to measure, available data provides an estimate of the scale of the damage.

Iran has between 71 and 73 million active internet users within a population of about 92 million. Iran’s Central Bank reports that the country’s GDP in 2024 reached *roughly $294 billion (USD) (Average 2024 market exchange rate: 680000 Iranian Rials) at current exchange rates. Different sources estimate that the digital economy accounts for between 5% and 6.5% of Iran’s national economic activity. This places the average daily value of digital economic activity at approximately $19.1 million.

Previous shutdowns showed how these figures translate into real losses. In October 2022, after the government imposed internet shutdowns during nationwide protests, the head of Tehran Chamber of Commerce’s Innovation and Digital Transformation Commission claimed **around $2.4 billion in business losses could be attributed to the shutdown. (Average 2022 market exchange rate: 330000 Iranian Rials)

IntelNews estimates that internet shutdowns in Iran cost the national economy between $50 and $60 million per day. Forbes has also reported that each hour of internet disruption results in losses of about $1.56 million. Using this hourly estimate as a basis, the recorded 170 hours of intentional outages in 2025 would have resulted in a total loss of around $214 million that year.

Beyond direct financial losses, prolonged internet shutdowns create long-term damage that is harder to measure. As disruptions continue, more small and medium businesses will endure losses that are beyond their ability to recover, forcing them to close permanently even after access is restored. Extended shutdowns also lead to layoffs, declining motivation among business owners, and a shrinking labour market as a result of increased emigration.

Taken together, the data shows that internet shutdowns in Iran are not short-term disruptions but repeated shocks to the economy. Each shutdown adds to existing problems, pushing more businesses toward failure, increasing job losses, and encouraging skilled workers to leave the country. Over time, the damage goes beyond lost income. Frequent and prolonged disruptions weaken trust in Iran’s digital infrastructure and make long-term investment less attractive. In practice, internet shutdowns are not just a tool to control protests; they are a policy choice that steadily harms the country’s economy and limits future growth.