The Economic Impact of COVID-19 and Related Coping and Resilience Strategies: The Experience of Iranian Households

Abstract

Objective: The health or livelihood paradox has become a significant issue due to the adverse effects of COVID-19 disease on the lives of millions of people in the world. In this study, we aimed to investigate the economic impacts resulting from the pandemic on Iranian households and their coping strategies and resilience. Methods: We recruited Iranian people > 18 years of age to complete a cross-sectional online survey from May 1 to June 20, 2020 (670 participants). It dealt with socio-economic and demographic features, exposure and death due to COVID-19, businesses influenced by COVID-19, household economic status after the pandemic, and coping and resilience strategies. Results: The most applied financial coping strategies were receiving loans or credits, decreasing household consumption, and selling assets and livelihoods, respectively. Half of households had already lost their income due to COVID-19-related job losses or its direct costs. Normalization of the economic situation would take more than 2 years for 8 of these households. Conclusions: The current study showed that COVID-19 economic effects could be severe and irreversible for vulnerable households. The support of policymakers, financial services providers, and private sector companies is critical in building financial resilience through the crisis and beyond.