Editing Economy of Syria

{{Short description|None}}
{{Use dmy dates|date=September 2021}}
{{Infobox economy 
| country = Syria
| image = BankSharqAndBlueTower.jpg
| caption = Bank Al-Sharq and the [[Blue Tower Hotel]] in [[Damascus]]
| currency = [[Syrian pound]] (SYP)
| year = [[Calendar year]]
| organs = [[Council of Arab Economic Unity|CAEU]], [[Council of Arab Economic Unity#Greater Arab Free Trade Area|GAFTA]], [[Group of 24|G24]], [[Group of 77|G77]], [[World Bank#Members|World Bank]], [[International Monetary Fund#Member countries|IMF]]
| group = {{plainlist|
*[[Developing country|Developing/Emerging]]<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=2200&sg=All+countries+%2f+Emerging+market+and+developing+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=29 September 2019}}</ref>
*Lower-middle income economy<ref name="CIAWFSY">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/syria/ |title=MIDDLE EAST :: SYRIA |publisher=Central Intelligence Agency |website=CIA.gov |access-date=29 December 2019}}</ref>
*Lower income economy<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019}}</ref>}}
| population = {{increasePositive}} 18,604,031 (2021 est.)<ref>{{cite web |url=https://worldpopulationreview.com/countries/syria-population|title=Population, total – Syrian Arab Republic |publisher=World population review|website=worldpopulationreview.com|access-date=1 January 2022}}</ref>
| gdp = {{plainlist|$22.4 billion (nominal; 2019 est.)<ref>{{cite web |url=https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=SY|title=GDP Syrian Arab Republic|publisher=World Bank|website=worldbank.org|access-date=29 December 2022}}</ref><br>$57.25 billion ([[Purchasing power parity|PPP]]; 2015 est.)<ref name="CIAWFSY"/>/$136 billion (PPP; 2021 est.){{citation needed|date=January 2022}}}}
| gdp rank = {{plainlist|
*[[List of countries by GDP (nominal)|138th (nominal, 2019)]]
*[[List of countries by GDP (PPP)|117th (PPP, 2015)]]}}
| growth = {{increase}} 1.4% (2019){{refn|group=note|data are in 2022 dollars}}
| per capita = $6,373 ([[Purchasing power parity|PPP]]; 2021)<ref name="percapit">{{Cite web|url=https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=SY|title=GDP per capita (current US$) - Syrian Arab Republic|publisher=World Bank|access-date=22 July 2022}}</ref>
| sectors = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 10.49%
*[[Secondary sector of the economy|industry]]: 26.51%
*[[Tertiary sector of the economy|services]]: 63.0%
*(2017 est.)<ref name="CIAWFSY"/>}}
| inflation = {{increaseNegative}} 28.1% (2017 est.)<ref>{{Cite web|url=https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?locations=SY-DZ|access-date=1 May 2022|publisher=World Bank|title=Inflation, consumer prices (annual %) - Syrian Arab Republic}}</ref>
| poverty = 82.5% (2014 est.)<ref name="CIAWFSY"/>
| hdi = {{plainlist|
*{{decrease}} 0.557 {{color|yellow|medium}} (2022)<ref>{{cite web |url=http://hdr.undp.org/en/indicators/137506 |title=Human Development Index (HDI) |publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]] |website=hdr.undp.org |access-date=11 December 2019}}</ref> ([[List of countries by Human Development Index|157th]])
*N/A [[List of countries by inequality-adjusted HDI|IHDI]] (2022)<ref>{{cite web |url=http://hdr.undp.org/en/content/table-3-inequality-adjusted-human-development-index-ihdi |title=Inequality-adjusted Human Development Index (IHDI) |publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]] |website=hdr.undp.org |access-date=11 December 2019 |archive-date=12 December 2020 |archive-url=https://web.archive.org/web/20201212055527/http://hdr.undp.org/en/content/table-3-inequality-adjusted-human-development-index-ihdi |url-status=dead }}</ref>}}
| edbr = {{increase}} [[Ease of doing business index#Ranking|176th (below average, 2020)]]<ref name="World Bank and International Financial Corporation">{{cite web |url=http://www.doingbusiness.org/data/exploreeconomies/syria |title=Ease of Doing Business in Syrian Arab Republic |publisher=Doingbusiness.org |access-date=2017-01-24 }}</ref>
| labor = {{increase}} 6,142,683 (2021)<ref>{{Cite web|url=https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=SY |title=Labor force, total – Syrian Arab Republic |publisher=[[World Bank]] |website=data.worldbank.org |access-date=1 January 2022}}</ref>
| occupations = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 17%
*[[Secondary sector of the economy|industry]]: 16%
*[[Tertiary sector of the economy|services]]: 67% (2008 est.)<ref name="CIAWFSY"/>}}
| unemployment = {{increaseNegative}} 50% (2021)<ref>{{cite web |title=Unemployment, total (% of the total labor force) (modeled ILO estimate) – Syrian Arab Republic |url=https://data.worldbank.org/indicator/SL.UEM.TOTL.ZS?locations=SY |website=data.worldbank.org |publisher=World Bank & [[International Labour Organization|ILO]] |access-date=5 April 2020}}</ref>{{refn|group=note|modeled [[ILO]] estimate}}
| industries = [[Petroleum]], [[textile]]s, [[food processing]], [[beverages]], [[tobacco]], [[phosphate rock]] [[mining]], [[cement]], [[oil seeds]] crushing, [[Automotive industry|car assembly]]
| exports = {{increase}} $1.01 billion (2021)<ref name="OEC"/>
| export-goods = [[olive oil]], [[spices]], [[barley]], [[Nut (fruit)|nut]]s, [[cotton]], [[tomatoes]], [[Aleppo soap|soap]], [[calcium phosphate|phosphate]]s, [[cumin seeds]], [[pistachios]], [[glass]], [[Cleaning agent|cleaning products]], [[apples]], [[pears]], [[potatoes]], and some pitted fruits (2021)<ref name="OEC"/>
| export-partners = {{plainlist|
*{{flag|Saudi Arabia}} 30.9%
*{{flag|Turkey}} 18.1%
*{{flag|Lebanon}} 12.2%
*{{flag|Jordan}} 6.88%
*{{flag|Egypt}} 5.35%
*{{flag|UAE}} 4.83%
*{{flag|Kuwait}} 4.27%
*{{flag|Germany}} 2.02% 
*{{flag|Serbia}} 1.57% (2021)<ref name="OEC">{{cite web |title=Foreign trade partners of Syria |url=https://oec.world/en/visualize/tree_map/hs92/import/syr/show/all/2021/|publisher=[[The Observatory of Economic Complexity]] |access-date=19 July 2022}}</ref>}}
| imports = {{increase}} $4.5 billion (2021)<ref name="OEC"/>
| import-goods = [[cigarette]]s, [[tobacco]], [[Brown sugar#Natural brown sugar|raw sugar]], [[motor vehicle]]s, broadcasting equipment, [[wheat flour]]s, [[sunflower oil]], [[liquefied petroleum gas]], [[associated petroleum gas]], [[Oil refinery|refined petroleum]], [[coffee]] and [[rice]] (2021)<ref name="OEC"/>
| import-partners = {{plainlist|
*{{flag|Turkey}} 45%
*{{flag|China}} 11.1%
*{{flag|UAE}} 10.6%
*{{flag|Egypt}} 6.56%
*{{flag|Jordan}} 2.71% 
*{{flag|India}} 2.67%
*{{flag|Lebanon}} 2.47% 
*{{flag|Saudi Arabia}} 1.65% 
*{{flag|Italy}} 1.59% 
*{{flag|Germany}} 1.07% (2021)<ref name="OEC"/> }}
| gross external debt = {{increaseNegative}}$7 billion (2020 est.)
| debt = {{increaseNegative}}67% of GDP (2021 est.)
| revenue = $2.7 billion (2021 est.)
| expenses = {{decrease}}$2.1 billion (2021 est.)
| aid = humanitarian aid $7.7 billion (2020 est.)<ref>{{Cite news |url=https://www.reuters.com/article/us-syria-security-eu-idUSKBN241001|publisher=[[Reuters]]|access-date= 2 January 2022|date=30 June 2020|title=U.N. raises $7.7 billion for Syrians beset by war and COVID-19|author= Robin Emmott}}</ref>
| reserves = {{increase}}$2.1 billion (2020 est.)
| cianame = syria
}}
The '''economy of Syria''', primarily based on agriculture in the country's early years, deteriorated  after the start of the [[Syrian civil war]]  in March 2011.<ref name="CIA World Fact Book – Syria's Economy">[https://www.cia.gov/the-world-factbook/countries/syria/ CIA World Fact Book – Syria's Economy]. Cia.gov.</ref><ref>{{Cite news|date=2016-03-11|title=Syria: The story of the conflict|language=en-GB|work=BBC News|url=https://www.bbc.com/news/world-middle-east-26116868|access-date=2021-07-26}}</ref>

== History ==

Since the establishment of the [[First Syrian Republic]] in 1946, the economy has undergone many structural and other changes.<ref name=":3">{{cite encyclopedia|title=Syria: a country study|publisher=[[Federal Research Division]], [[Library of Congress]]|location=Washington, D.C.|url=https://www.loc.gov/item/87600488/|last=Boris|first=Rhonda E.|date=1988|editor-last=Collelo|editor-first=Thomas|pages=107–110|oclc=44250830|postscript=. {{PD-notice}}|entry=The Economy}}</ref> Although the presence of the [[Allies of World War II|Allied forces]] during [[World War II]] stimulated commerce by providing markets for agriculture, textiles, and other locally manufactured goods, Syria lacked both the infrastructure and the resources to achieve economic prosperity.<ref name=":3" /> Agriculture, which had played a key role in the economy, became a factor in  industrial expansion as  landowners channeled profits from agricultural exports into agroindustrial and related urban enterprises.<ref name=":3" /> The population, working under [[land tenure]] and [[sharecropping]] arrangements, derived few benefits from the agriculturally induced economic growth of the 1950s.<ref name=":3" /> However, [[United Arab Republic|Syria's union with Egypt]] (1958–61) and the rise of the [[Ba'ath Party|Baath Party]] as the major political force in the country in the 1960s, transformed Syria's economic orientation and development strategy.<ref name=":3" />
[[File:GDP per capita development of Syria.svg|thumb|Historical development of real GDP per capita in Syria, since 1820]]
=== 1960s–1970s: State-led development ===
By the mid-1960s, government-sponsored [[land reform]] and [[nationalization]] of major industries and foreign investments had confirmed the new [[Socialism|socialist]] direction of Syria's economic policy.<ref name=":3" /> As the state assumed greater control over economic decision-making by adopting [[Planned economy|centralized planning]] and strictly regulating commercial transactions, Syria experienced a substantial loss of skilled workers, administrators, and their capital.<ref name=":3" /> Despite the political upheavals, which undermined the confidence of landowners, merchants, and industrialists, the state successfully implemented large-scale development projects to expand industry, agriculture, and infrastructure.<ref name=":3" />

During the 1970s, Syria achieved high rates of economic growth.<ref name=":3" /> The [[1973 oil crisis|dramatic rise of world oil prices]] from 1973 to 1974 led to increased production from domestic [[Oil refinery|refineries]].<ref name=":3" /> Moreover, higher prices for agricultural and oil exports, as well as the state's limited [[economic liberalization]] policy, encouraged growth.<ref name=":3" /> Also, Syria's economic boom was furthered by increased [[remittance]]s from Syrians working in the oil-rich Arab states and higher levels of Arab and other [[Aid|foreign aid]].<ref name=":3" /> By the end of the decade, the Syrian economy had shifted from its traditional agrarian base to an economy dominated by the service, industrial, and commercial sectors.<ref name=":3" /> Massive expenditures for development of irrigation, electricity, water, road building projects, irisin plants and expansion of health services and education to rural areas contributed to prosperity.<ref name=":3" /> However, the economy remained dependent on foreign aid and grants to finance the growing deficits both in the budget and in trade.<ref name=":3" /> Syria, as a front-line state in the [[Arab–Israeli conflict|Arab-Israeli conflict]], was also vulnerable to the vagaries of Middle East politics, relying on Arab aid transfers and [[Soviet Union|Soviet]] assistance to support mounting defense expenditures.<ref name=":3" />

=== 1980s: Crisis and austerity ===
By the mid-1980s, the country's economic climate had shifted from prosperity to austerity.<ref name=":3" /> Syria's economic boom collapsed as a result of the rapid fall of world oil prices, lower export revenues, drought affecting agricultural production, and falling worker remittances.<ref name=":3" /> Also, Arab aid levels decreased because of economic retrenchment in the oil-producing states and Syrian support for Iran in the [[Iran–Iraq War|Iran-Iraq War]].<ref name=":3" /> Real per capita GDP fell 22% between 1982 and 1989.<ref name="fred.stlouisfed.org">{{cite web|date=January 1960|title=Purchasing Power Parity Converted GDP per Capita (Chain Series) for Syria|url=https://fred.stlouisfed.org/series/RGDPCHSYA625NUPN|access-date=25 October 2018|website=Purchasing Power Parity Converted GDP Per Capita (Chain Series) for Syria|publisher=FRED Economic Data: Federal Reserve Bank of St Louis}}</ref> To restore the economy, the government sharply reduced spending, cut back imports, encouraged more private sector and foreign investment, and launched an anticorruption campaign against smugglers and black-market money changers.<ref name=":3" /> However, massive defense outlays continued to divert resources from productive investments.<ref name=":3" />

By the late 1980s, spot shortages of basic commodities occurred frequently, and industry operated far below capacity because of routine power outages.<ref name=":3" /> Foreign exchange reserves plummeted, the trade deficit widened, and real gross domestic product growth fell as economic difficulties compounded.<ref name=":3" /> Although the government instituted limited reforms to respond to the burgeoning crisis, Syria's pressing economic problems required a radically restructured economic policy to improve future economic performance.<ref name=":3" />

=== 1990s–2000s: Liberalization and privatization ===
In 1990, the Assad government instituted a series of economic reforms, although the economy remained highly regulated.<ref name="Central Intelligence Agency">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/syria/ |website=CIA World Factbook |publisher=Central Intelligence Agency |access-date=25 October 2018|title=Middle East :: Syria – the World Factbook – Central Intelligence Agency }}</ref> The Syrian economy experienced strong growth throughout the 1990s, and into the 2000s.<ref name="fred.stlouisfed.org" /> Syria's per capita GDP was US$4,058 in 2010.<ref>{{cite web |title=Purchasing Power Parity Converted GDP per Capita, G-K method, at current prices for Syria |url=https://fred.stlouisfed.org/series/PPCGDPSYA620NUPN |website=FRED Economic Data |publisher=Federal Reserve Bank of St Louis |access-date=25 October 2018|date=January 1960 }}</ref> There is no authoritative GDP data available after 2012, due to Syria's civil war.<ref name="Central Intelligence Agency" />

Following his assumption of power in 2000, [[Bashar al-Assad]] sought to frame his leadership around modernizing and opening the economy. He emphasized, in particular, "the need to modernize the regulatory environment and the industrial base, activate and encourage the private sector, remove bureaucratic obstacles to investment, increase job opportunities, qualify cadres, improve education and expand information technology."<ref>{{Cite book|last=Perthes|first=Volker|title=Syria under Bashar al-Asad:Modernisation and the Limits of Change|publisher=Routledge|year=2005|isbn=9780198567509|pages=32}}</ref> While the government's [[Neoliberalism|neoliberal]] reforms indeed contributed to ramping up trade and invigorating the private sector, these were accompanied by rising inequality, declining public services, and increasingly overt forms of corruption, which ultimately helped fuel protests in 2011.<ref>{{Cite web|date=2011-07-06|title=Popular Protest in North Africa and the Middle East (VI): The Syrian People's Slow-motion Revolution|url=https://www.crisisgroup.org/middle-east-north-africa/eastern-mediterranean/syria/popular-protest-north-africa-and-middle-east-vi-syrian-people-s-slow-motion-revolution|access-date=2021-11-22|website=Crisis Group|language=en}}</ref> In one example of this trend, the Syrian Agricultural Workers Union complained in February 2011 that state mismanagement and the lifting of input subsidies was exacerbating the impact of drought on Syria's agricultural sector.<ref>{{Cite web|date=22 February 2011|title=End of Subsidies Main Reason behind Decline of Agriculture Output, Workers Union Says|url=https://syria-report.com/news/end-of-subsidies-main-reason-behind-decline-of-agriculture-output-workers-union-says/|url-status=live|access-date=2021-11-22|website=Syria Report|language=en-US|archive-url=https://web.archive.org/web/20211122151623/https://syria-report.com/news/end-of-subsidies-main-reason-behind-decline-of-agriculture-output-workers-union-says/ |archive-date=22 November 2021 }}</ref>

Before the civil war, the two main pillars of the Syrian economy were agriculture and oil, which together accounted for about one-half of [[GDP]]. Agriculture, for instance, accounted for about 26% of GDP and employed 25% of the total labor force.<ref>{{Cite web|url=http://www.fao.org/emergencies/resources/documents/resources-detail/en/c/878213/|title=Counting the Cost: Agriculture in Syria after six years of crisis : FAO in Emergencies|website=fao.org|language=en|access-date=2018-04-28|archive-date=5 May 2019|archive-url=https://web.archive.org/web/20190505205244/http://www.fao.org/emergencies/resources/documents/resources-detail/en/c/878213/|url-status=dead}}</ref> However, poor climatic conditions and severe [[drought]] badly affected the agricultural sector, reducing its share in the economy to about 17% of 2008 GDP, down from 20.4% in 2007, according to preliminary data from the Central Bureau of Statistics. On the other hand, higher crude oil prices countered declining oil production and led to higher budgetary and export receipts.<ref name="USState2010">{{cite news|title=Background Note: Syria, September 2010|url=https://2009-2017.state.gov/outofdate/bgn/syria/158703.htm|newspaper=US State Department – Bureau of Near Eastern Affairs|access-date=24 June 2017}}</ref>

=== 2011–present: Syria's civil war ===
Since the outbreak of the Syrian Civil War, the Syrian economy has been affected by [[Sanctions against Syria|economic sanctions]] restricting trade with the [[Arab League]],<ref>{{cite web|url= https://www.bbc.co.uk/news/world-middle-east-15901360 |title=Syria unrest: Arab League adopts sanctions in Cairo |publisher= BBC |date=27 November 2011|access-date=24 August 2012}}</ref> [[Australia]],<ref>{{cite news|url=http://www.abc.net.au/news/2012-06-25/australia-ramps-up-sanctions-on-syria/4089630 |title=Australia Ramps Up Sanctions on Syria |newspaper=ABC News |publisher= ABC |date=25 June 2012|access-date=24 August 2012}}</ref> [[Canada]],<ref>{{cite news|url=https://www.cbc.ca/news/canada/canada-imposing-further-sanctions-on-syria-1.1085745 |title=Canada imposing further sanctions on Syria |publisher= CBS |date=23 December 2011|access-date=24 August 2012}}</ref> the [[European Union]],<ref>{{cite news|url=https://www.telegraph.co.uk/news/worldnews/middleeast/syria/9413504/EU-preparing-new-Syrian-sanctions.html |title=EU Preparing New Syrian Sanctions |newspaper= The Daily Telegraph |date=19 July 2012|access-date=24 August 2012}}</ref> (as well as the European countries of [[Albania]],<ref name="Georgia Times"/> [[Iceland]],<ref name="Georgia Times"/> [[Liechtenstein]],<ref name="Georgia Times"/> [[Moldova]],<ref name="Georgia Times"/> [[Montenegro]],<ref name="Georgia Times"/> [[North Macedonia]],<ref name="Georgia Times"/> [[Norway]],<ref>{{cite web |url=http://www.tnp.no/norway/politics/3098-norway-aligns-itself-with-tougher-eu-sanctions-against-syria |title=Norway Aligns Itself with Tougher EU Sanctions against Syria |publisher=The Nordic Page |date=26 July 2011 |access-date=24 August 2012 |archive-date=30 August 2012 |archive-url=https://web.archive.org/web/20120830023743/http://www.tnp.no/norway/politics/3098-norway-aligns-itself-with-tougher-eu-sanctions-against-syria |url-status=dead }}</ref> [[Serbia]],<ref name="Georgia Times"/> and [[Switzerland]]),<ref>{{cite news |url= https://www.reuters.com/article/us-syria-crisis-switzerland-idUSBRE87D0S120120814 |title= Swiss broaden sanctions against Syria |work= Reuters |date= 14 August 2012 |access-date= 24 August 2012 |archive-date= 24 September 2015 |archive-url= https://web.archive.org/web/20150924170132/http://www.reuters.com/article/2012/08/14/us-syria-crisis-switzerland-idUSBRE87D0S120120814 |url-status= live }}</ref> [[Georgia (country)|Georgia]],<ref name="Georgia Times">{{cite web|url=http://www.georgiatimes.info/en/news/78944.html|title=Georgia joins EU sanctions against Syria|work=Georgia Times|date=8 August 2012|access-date=24 August 2012|archive-url=https://web.archive.org/web/20130513183919/http://www.georgiatimes.info/en/news/78944.html|archive-date=13 May 2013|url-status=dead}}</ref> [[Japan]],<ref>{{cite web|url=http://www.rttnews.com/1918142/japan-imposes-new-sanctions-on-syria.aspx |title=Japan Imposes New Sanctions on Syria |publisher= RTT |date=6 July 2012|access-date=25 August 2012}}</ref> [[South Korea]],<ref>{{cite web|url=http://www.ibtimes.com/south-korea-sanctions-taiwanese-syrian-firms-weapons-trade-north-1984966|title=South Korea Sanctions Taiwanese, Syrian Firms For Weapons Trade with the North|website=[[International Business Times]]|date=26 June 2015|access-date=30 August 2018}}</ref> [[Taiwan]],<ref>{{cite web|url=http://focustaiwan.tw/news/aipl/201804140020.aspx|title=Taiwan supports sanctions against Syria for chemical attacks: MOFA – Politics – FOCUS TAIWAN – CNA ENGLISH NEWS|date=14 April 2018 |access-date=30 August 2018}}</ref> [[Turkey]],<ref>{{cite news|url=https://www.nytimes.com/2011/12/01/world/middleeast/turkey-intensifies-sanctions-against-syrian-regime.html |title=Turkey Moves to Intensify Sanctions Against Syria |newspaper= New York Times |date=30 November 2011|access-date=24 August 2012}}</ref> and the United States.<ref>{{cite web|url=https://obamawhitehouse.archives.gov/the-press-office/2011/04/29/executive-order-13572-blocking-property-certain-persons-respect-human-ri |title= United States trade and financial sanctions against syria |access-date=24 August 2012|via=[[NARA|National Archives]] |work=[[whitehouse.gov]] |date= 29 April 2011 }}</ref> Sanctions against Syria were further extended by the US [[Caesar Syria Civilian Protection Act]] that came into force in June 2020.

The destruction and dislocation associated with the civil war have devastated Syria's economy. By the end of 2013, the UN estimated total economic damage from the Syrian Civil War at $143&nbsp;billion.<ref>[http://www.publicfinanceinternational.org/news/2014/06/un-highlights-economic-damage-of-syrian-conflict/ UN highlights economic damage of Syrian conflict] {{Webarchive|url=https://web.archive.org/web/20150513053427/http://www.publicfinanceinternational.org/news/2014/06/un-highlights-economic-damage-of-syrian-conflict/ |date=13 May 2015 }} Public Finance International</ref> In 2018, the World Bank estimated that about one-third of Syria's housing stock and one half of its health and education facilities have been destroyed by the conflict. According to the World Bank, a cumulative total of $226 billion in GDP was lost due to the conflict from 2011 to 2016.<ref>{{cite web |title=Syria: Overview |url=https://www.worldbank.org/en/country/syria/overview |publisher=World Bank |access-date=25 October 2018}}</ref>

The Syrian economy suffered from conflict-related [[hyperinflation]]. The Syrian annual inflation rate is one of the highest in the world.<ref name=":0">{{Cite web|url=https://www.cia.gov/the-world-factbook/countries/syria/|title=The World Factbook – Central Intelligence Agency|website=cia.gov|language=en|access-date=2018-04-15}}</ref><ref>{{Cite web|url=https://www.cato.org/publications/commentary/syrias-other-problem-inflation|title=Syria's Other Problem: Inflation|last=Asia|first=Steve H. Hanke This article appeared in the October 2013 issue of Globe|date=2013-09-26|website=Cato Institute|language=en|access-date=2018-04-15}}</ref> The national currency, the [[Syrian pound]], tumbled in mid-2020 against the US dollar, therefore stating that Syrian economy was only taking a turn for the worst. The pound, which traded at LS&nbsp;47 to the dollar before the 2011 uprising, plunged to over LS&nbsp;3,000 to the dollar. Prices of basic goods have skyrocketed and some staples have disappeared from the market as merchants and the public struggled to keep up with the rising cost of living.<ref>{{cite web| url = https://www.theage.com.au/world/middle-east/bashar-al-assad-fires-his-pm-amid-worsening-economic-crisis-20200612-p55214.html| title = Bashar al- Assad fires his PM amid worsening economic crisis| date = 12 June 2020}}</ref>

In 2022, Syria joined the Chinese [[Belt and Road Initiative]], which could help the country rebuild its war-torn infrastructure and economy.<ref>{{cite web|author=Siddiqi, Ali |date=2022   |title="China's 'Belt and Road' Risk in Syria May Reap Big Rewards"|url=https://www.voanews.com/a/china-s-belt-and-road-risk-in-syria-may-reap-big-rewards-/6415768.html | publisher= VOA News |access-date= 9 September 2022}}</ref><ref>{{cite web |author=O'Connor, Tom |date=2022 |title="Syria Officially Joins China's Belt and Road, Seeking Lifeline to Defy U.S. Sanctions" |url=https://www.newsweek.com/syria-officially-joins-chinas-belt-road-seeking-lifeline-defy-us-sanctions-1668849/ |publisher=Newsweek |access-date=9 September 2022 |archive-date=21 September 2022 |archive-url=https://web.archive.org/web/20220921235604/https://www.newsweek.com/syria-officially-joins-chinas-belt-road-seeking-lifeline-defy-us-sanctions-1668849 |url-status=dead }}</ref> Following the end of Bashar Al-asad regime and the civil war, the interim government appointed for the first time in history a woman as governor of the central bank. [[Maysaa Sabreen]] was announced as the new governor on December 30, 2024.<ref>{{Cite web |title=Maysaa Sabrine Takes the Helm at Syrian Central Bank {{!}} Headlines |url=https://www.devdiscourse.com/article/headlines/3210472-maysaa-sabrine-takes-the-helm-at-syrian-central-bank |access-date=2024-12-30 |website=Devdiscourse |language=en}}</ref><ref>{{Cite web |title=Syrias new rulers appoint Maysaa Sabrine as central bank governor |url=https://www.lbcgroup.tv/news/middleeastnews/827410/syrias-new-rulers-appoint-maysaa-sabrine-as-central-bank-governor/en |access-date=2024-12-30 |website=LBCIV7 |language=en}}</ref> 20 days before on the 10 December [[Basel Abdul Hannan]] became Minister of the Economy, In his new role, he announced plans to implement [[Economic liberalization|market liberalization]] reforms, including dismantling the existing import-export control system and moving toward a [[Free market|free-market]] economic model. During a meeting with the Damascus Chambers of Commerce, he outlined plans to remove restrictions on imports and allow registered businesses to trade more freely.<ref name="reuters-econ" />

==Basic information==
{{more citations needed section|date=April 2016}}
During the 1960s, along socialist lines, the government [[nationalisation|nationalized]] most major enterprises and adopted economic policies designed to address regional and [[social class|class]] disparities.<ref name="I.B. Tauris">{{cite book|last1=Perthes|first1=Volker|title=The Political Economy of Syria Under Asad|date=1997|publisher=I.B. Tauris|isbn=1-86064-192-X|location=London and New York|page=2}}</ref> Economic reform has been incremental and gradual. In 2001, [[private banking]] in Syria has been legalized. In 2004, four private banks began operations. In August 2004, a committee was formed to supervise the establishment of a [[stock market]]. Beyond the financial sector, the Syrian Government has enacted major changes to rental and tax laws, and is reportedly considering similar changes to the commercial code and to other laws, which impact property rights.{{citation needed|date=January 2016}}

Syria produced [[Heavy crude oil|heavy-grade oil]] from fields inside in the [[Al-Hasakah Governorate|northeast]] since the late 1960s.<ref name=":1">{{Cite journal|last1=Almohamad|first1=Hussein|last2=Dittmann|first2=Andreas|date=June 2016|title=Oil in Syria between Terrorism and Dictatorship|journal=Social Sciences|language=en|volume=5|issue=2|pages=20|doi=10.3390/socsci5020020|doi-access=free}}</ref> In the early 1980s, [[light crude oil|light-grade]], [[sweet crude oil|low-sulphur oil]] was discovered near [[Deir ez-Zor]] in eastern Syria.<ref name=":1" /> This discovery relieved Syria of the need to import light oil to mix with domestic heavy crude in [[Oil refinery|refineries]].  As the war erupted in 2011, Syria's oil production had dropped to 353,000 bpd and then plunged to 24,000 bpd by 2018.<ref name=":2">{{Cite news|date=2019-11-21|title=Syria war: Who benefits from its oil production?|language=en-GB|work=BBC News|url=https://www.bbc.com/news/50464561|access-date=2021-07-15}}</ref> Syria's [[oil reserve]]s have been gradually depleted and reached an estimated 2.5 billion barrels of oil reserves in 2018.<ref name=":2" />

In 1990, the government established an official [[parallel exchange rate]] to provide incentives for remittances and exports through official channels. This action improved the supply of basic commodities and contained inflation by removing risk premiums on smuggled commodities.<ref>{{cite book |title=Foreign Economic Trends and Their Implications for the United States |date=1992 |publisher=U.S. Department of Commerce, Industry and Trade Administration |page=5 |language=en}}</ref>

Foreign aid to Syria in 1997 totaled an estimated US$199 million. The [[World Bank]] reported that in July 2004, it had committed a total of US$661 million for 20 operations in [[Syria]]. One investment project remained active at that time.

{| class="wikitable"
|-
! Year || Gross Domestic Product || US Dollar Exchange || Inflation Index<br />(2000=100) || Per Capita Income<br /> (as % of USA) || Population
|-
| 1980 || 78,270 || £S 3.94 || 8.10 || 12.17  ||8,971,343
|-
| 1985 || 146,225 || £S 3.92 || 14 || 11.64  || 10,815,289
|-
| 1990 || 268,328 || £S 28.80 || 57 || 4.37  || 12,720,920
|-
| 1995 || 570,975 || £S 35.30 || 98 || 4.18  || 14,610,348
|-
| 2000 || 903,944 || £S 49.68 || 100 || 3.49  ||16,510,861
|-
| 2005 || 1,677,417 || £S 56.09 || 122 || 3.70 || 19,121,454
|-
| 2010 || 59,633,000 || £S 47.00 || 4.40% || 5.79 || 21,092,262
|}

==External trade and investment==
[[Image:2006Syrian exports.PNG|thumb|350px|Syrian exports in 2006]]
Despite the mitigation of the severe [[drought]] that plagued the region in the late 1990s and the recovery of energy export revenues, Syria's economy has historically faced serious challenges.

Commerce has always been important to the Syrian economy,<ref>{{cite web |title=Policies for business in the Mediterranean Countries |url=http://unpan1.un.org/intradoc/groups/public/documents/caimed/unpan018700.pdf |publisher=Centre for Administrative Innovation in the Euro-Mediterranean Region |archive-url=https://web.archive.org/web/20190218034915/http://unpan1.un.org/intradoc/groups/public/documents/caimed/unpan018700.pdf |access-date=5 November 2021 |archive-date=18 February 2019 |url-status=dead}}</ref> which benefited from the country's strategic location along major east–west [[trade route]]s. Syrian cities boast both traditional industries such as [[weaving]] and dried-fruit packing and modern [[heavy industry]]. Given the policies adopted from the 1960s through the late 1980s, Syria refused to join the "[[economic globalization|global economy]]". In late 2001, however, Syria submitted a request to the [[World Trade Organization]] (WTO) to begin the accession process. Syria had been an original contracting party of the former [[General Agreement on Tariffs and Trade]] but withdrew in 1951 because of Israel's joining. Major elements of current Syrian trade rules would have to change in order to be consistent with the WTO. In March 2007, Syria signed an [[Association Agreement]] with the [[European Union]] that would encourage both sides to negotiate a free trade agreement before 2010.

The bulk of Syrian [[International trade|import]]s have been raw materials essential for industry, agriculture, equipment, and machinery. Major exports include [[crude oil]], refined products, [[cotton|raw cotton]], [[clothing]], fruits, and [[cereal]] grains.

Over time, the government has increased the number of transactions to which the more favorable neighboring country exchange rate applies. The government also introduced a quasi-rate for non-commercial transactions in 2001 broadly in line with prevailing [[black market]] rates.

Given the poor development of its own [[capital market]]s and Syria's lack of access to international money and capital markets, monetary policy remains captive to the need to cover the [[budget deficit|fiscal deficit]]. Although in 2003 Syria lowered [[interest rate]]s for the first time in 22 years and again in 2004, rates remain fixed by law.

{{As of|2012}}, because of the ongoing Syrian civil war, the value of Syria's overall exports has been slashed by two-thirds, from the figure of US$12&nbsp;billion in 2010 to only US$4&nbsp;billion in 2012.<ref name="AFP economy">{{cite news|title=Syria's battling economy may hold on with help from friends |url=https://www.google.com/hostednews/afp/article/ALeqM5iIP7T7v6W5nxdJfSVrQhm5aszqgQ?docId=CNG.7610691ef383e1f07fd5e86d87ebce6e.561 |agency=Agence France-Presse |access-date=28 August 2012 |url-status=dead |archive-url=https://web.archive.org/web/20120823112658/https://www.google.com/hostednews/afp/article/ALeqM5iIP7T7v6W5nxdJfSVrQhm5aszqgQ?docId=CNG.7610691ef383e1f07fd5e86d87ebce6e.561 |archive-date=23 August 2012 }}</ref> Syria's GDP declined by over 3% in 2011.<ref>{{cite news|url=http://www.ft.com/cms/s/0/2ceb7690-50df-11e1-8cdb-00144feabdc0.html |title= Syria's ailing economy hits citizens and regime |work=Financial Times |date=6 February 2012|access-date=24 August 2012}}</ref>

===Debt===
Under Syrian President [[Bashar al-Assad|Bashar Assad]], national debt in relation to GDP went from 152.09% in 2000 down to 30.02% in 2010.<ref>[https://www.statista.com/statistics/326945/national-debt-of-syria-in-relation-to-gross-domestic-product-gdp/ Syria: National debt from 2000 to 2010 in relation to gross domestic product (GDP)]. ''Statista''</ref> Prior to the civil war, Syria attempted to ease its heavy [[Government debt|foreign debt]] burden through bilateral rescheduling deals with virtually all of its key [[creditor]]s in Europe, including Germany, France, and Russia.<ref name=":4">{{Cite web |title=Syria (05/07) |url=https://2009-2017.state.gov/outofdate/bgn/syria/85051.htm |access-date=June 1, 2024 |website=[[United States Department of State]]}}</ref> In December 2004, Syria and [[Poland]] reached an agreement by which Syria would pay $27 million out of the total $261.7 million debt.<ref>{{Cite web|title=Syria – Economy|url=https://www.globalsecurity.org/military/world/syria/economy.htm|access-date=2021-07-15|website=globalsecurity.org}}</ref> In January 2005, [[Russia]] and Syria signed a deal that wrote off nearly 75% of Syria's debt to Russia, approximately $13 billion.<ref>{{Cite news|date=2011-09-19|title=Why Russia is blocking international action against Syria|work=Christian Science Monitor|url=https://www.csmonitor.com/World/Middle-East/2011/0919/Why-Russia-is-blocking-international-action-against-Syria|access-date=2021-07-18|issn=0882-7729}}</ref> The agreement left Syria with less than €3 billion (just over $3.6 billion) owed to Moscow. Half of it would be repaid over the next 10 years, while the rest would be paid into Russian accounts in Syrian banks and could be used for Russian investment projects in Syria and for buying Syrian products. Later that year, Syria reached an agreement with [[Slovakia]] and the [[Czech Republic]] to settle an estimated $1.6 billion in debt, in exchange for a one time payment of $150 million.<ref name=":4" />

==Sectors of the economy==

===Agriculture===
{{Main|Agriculture in Syria}}
[[File:Olive groves in Syria.jpg|thumb|right|Olive groves in Western-Syria, [[Homs Governorate]].]]
Agriculture is a high priority in Syria's economic development plans, as the government seeks to achieve food self-sufficiency, increase export earnings, and halt rural out-migration.<ref name=cp9-10>{{cite news|title=Country Profile: Syria, April 2005|url=http://memory.loc.gov/frd/cs/profiles/Syria.pdf|newspaper=Library of Congress – Federal Research Division |pages=9–10}}</ref> Thanks to sustained [[Capital (economics)|capital investment]], infrastructure development, [[subsidy|subsidies]] of inputs, and price supports, before the civil war Syria went from a net importer of many agricultural products to an exporter of cotton, fruits, [[vegetable]]s, and other foodstuffs. One of the prime reasons for this turnaround was the government's investment in huge [[irrigation]] systems in northern and northeastern Syria.<ref name="state.gov">[https://2009-2017.state.gov/outofdate/bgn/syria/47567.htm Syria (08/04)] . US State Department.</ref> The agriculture sector, as of 2009, employed about 17% of the labor force and generates about 21% .org/ddp/home.do?Step=2&id=4&DisplayAggregation=N&SdmxSupported=Y&CNO=2&SET_BRANDING=YES The World Bank DataBank | Explore . Create . Share]. Databank.worldbank.org.</ref><ref name="cp11"/> of which livestock accounted for 16%, and fruit and grains for more than 40%.<ref name=cp9-10/>

In 2015, Syria's main exports included spice seeds ($83.2 million), apples and pears ($53.2 million).<ref>{{Cite web|url=https://atlas.media.mit.edu/en/profile/country/syr/|title=Syria|website=atlas.media.mit.edu|language=en|access-date=2018-04-28|archive-date=18 November 2017|archive-url=https://web.archive.org/web/20171118135310/https://atlas.media.mit.edu/en/profile/country/syr/|url-status=dead}}</ref>

Most land is privately owned, a crucial factor behind the sector's success.<ref name=cp9-10/> Of Syria's {{cvt|196,000|km2}},<ref name="state.gov"/> about 28% of it is cultivated, and 21% of that total is irrigated. Most irrigated land is designated "strategic", meaning that it encounters significant state intervention in terms of pricing, subsidies, and marketing controls. "Strategic" products such as wheat, barley, and sugar beets, must be sold to state marketing boards at fixed prices, often above world prices in order to support farmers, but at a significant cost to the state budget. The most widely grown arable crop is wheat, but the most important cash crop is cotton; cotton was the largest single export before the development of the oil sector. Nevertheless, the total area planted with cotton has declined because of an increasing problem of water shortage coupled with old and inefficient irrigation techniques. The output of grains like wheat is often underutilized because of poor storage facilities.<ref name=cp9-10/>

Water and energy are among the most pervasive issues facing the agriculture sector. Another difficulty suffered by the agricultural sector is the government's decision to liberalize prices of fertilizers, which increased between 100% and 400%.{{when|date=June 2021}} Drought was an alarming problem in 2008; however, the drought situation slightly improved in 2009. Wheat and barley production about doubled in 2009 compared to 2008. In spite of that, the livelihoods of up to 1 million agricultural workers have been threatened. In response, the UN launched an emergency appeal for $20.2 million. Wheat has been one of the crops most affected, and for the first time in 2 decades Syria has moved from being a net exporter of wheat to a net importer.<ref>[https://2009-2017.state.gov/r/pa/ei/bgn/3580.htm#econ Syria]. US State Department (24 October 2012).</ref> During the civil war which began in 2011, the Syrian government was forced to put out a tender for 100,000 [[metric tonnes]] of wheat, one of the few trade products not subject to economic sanctions.<ref>{{cite web|title=Syria Looks for Big Wheat Purchase|url=https://www.reuters.com/article/us-grain-syria-idUSBRE87S0JJ20120829|work=Reuters|date=29 August 2012|access-date=31 August 2012|archive-date=30 August 2012|archive-url=https://web.archive.org/web/20120830011053/http://www.reuters.com/article/2012/08/29/us-grain-syria-idUSBRE87S0JJ20120829|url-status=live}}</ref>

Less than 2.7% of [[Forests of Syria|Syria's land area is forested]], and only a portion of that is commercially useful.<ref name="CIA World Fact Book – Syria's Economy" /> Limited forestry activity is centered in the higher elevations of the mountains just inland from the coast, where rainfall is more abundant.<ref name=cp10>{{cite news|title=Country Profile: Syria, April 2005|url=http://memory.loc.gov/frd/cs/profiles/Syria.pdf|newspaper=Library of Congress – Federal Research Division |page=10}}</ref>

=== Drug exports ===
{{Further|Ba'athist Syrian Captagon industry}}
As of 2022, [[captagon]] was Ba'athist Syria's most valuable export product and a key source of income for the Assad regime. The total value of drug shipments sold in 2021 were approximately $5.7 billion.<ref>{{Cite web |title=The Al-Assad Government's Captagon Trade |url=https://carnegieendowment.org/sada/2022/10/the-al-assad-regimes-captagon-trade?lang=en |access-date=2022-11-10 |website=Carnegie Endowment for International Peace |language=en}}</ref> Those were mostly dismantled by the new [[Syrian caretaker government]] in January 2025.

===Energy and mineral resources===

====Mining====
Phosphates are the major minerals exploited in Syria. According to estimates Syria has around 1,700 million tons of phosphate reserves.<ref>{{cite web|url=http://www.nti.org/learn/facilities/447/|title=Ministry of Petroleum and Mineral Resources of Syria|website=nti.org|access-date=30 August 2018}}</ref> Production dropped sharply in the early 1990s when world demand and prices fell, but output has since increased to more than 2.4 million tons. Syria produced about 1.9% of the world's phosphate rock output and was the world's ninth ranked producer of phosphate rock in 2009.<ref name=USGeoSurvey>{{cite web|last=Taib|first=Mowafa|title=2009 Minerals Yearbook: Syria|url=http://minerals.usgs.gov/minerals/pubs/country/2009/myb3-2009-sy.pdf|publisher=US Geological Survey|access-date=23 August 2011|archive-date=13 May 2013|archive-url=https://web.archive.org/web/20130513184136/http://minerals.usgs.gov/minerals/pubs/country/2009/myb3-2009-sy.pdf|url-status=dead}}</ref> Other major minerals produced in Syria include cement, gypsum, industrial sand (silica), marble, natural crude asphalt, nitrogen fertilizer, phosphate fertilizer, salt, steel, and volcanic tuff, which generally are not produced for export.<ref name=cp10/>

====Oil and natural gas====
{{main|Petroleum industry in Syria}}
Syria is a relatively small oil producer, accounting for just 0.5% of global production in 2010.<ref name=ReutersEnergy>{{cite news|title=Factbox: Syria's energy sector|url=https://www.reuters.com/article/us-syria-oil-idUSTRE77D15V20110814|access-date=18 August 2011|newspaper=Reuters|date=14 August 2011|first=Daniel|last=Fineren|archive-date=28 August 2011|archive-url=https://web.archive.org/web/20110828010821/http://www.reuters.com/article/2011/08/14/us-syria-oil-idUSTRE77D15V20110814|url-status=live}}</ref><ref name=PBReview>{{cite web|title=BP Statistical Review of World Energy June 2011|url=http://www.bp.com/assets/bp_internet/globalbp/globalbp_uk_english/reports_and_publications/statistical_energy_review_2011/STAGING/local_assets/pdf/statistical_review_of_world_energy_full_report_2011.pdf|publisher=British Petroleum. pp. 6-8|access-date=18 August 2011|archive-date=2 September 2011|archive-url=https://web.archive.org/web/20110902033116/http://www.bp.com/assets/bp_internet/globalbp/globalbp_uk_english/reports_and_publications/statistical_energy_review_2011/STAGING/local_assets/pdf/statistical_review_of_world_energy_full_report_2011.pdf|url-status=dead}}</ref> Although Syria is [[List of countries by oil production|not a major oil exporter]] by Middle Eastern standards, oil is a major pillar of the economy. According to the [[International Monetary Fund]], oil sales for 2010 were projected to generate $3.2 billion for the Syrian government and account for 25.1% of the state's revenue.<ref name=IMF>{{cite book|title=IMF Country Report  |page=17|url=http://www.imf.org/external/pubs/ft/scr/2010/cr1086.pdf|access-date=18 August 2011}}</ref>

According to the 2009 Syria Report of the Oxford Business Group, the oil sector accounted for 23% of [[government revenue]]s, 20% of exports and 22% of GDP in 2008. Syria exported roughly 150,000 bpd in 2008, and oil accounted for a majority of the country's export income.<ref name="USState2010" />

====Electrical generation====
In 2001 Syria reportedly produced 23.3 billion [[kilowatt hours]] (kWh) of electricity and consumed 21.6 billion kWh.<ref name=cp10/> As of January 2002, Syria's total installed electric generating capacity was 7.6 [[gigawatts]] (GW), with [[fuel oil]] and [[natural gas]] serving as the primary energy sources and 1.5 GW generated by [[hydroelectric power]].<ref name=cp10/> A network totaling 45 GW linking the electric power grids of Syria, [[Egypt]], and [[Jordan]] was completed in March 2001.<ref name=cp10/> Syria's electric supply capacity is an important national priority, and the government hopes to add 3,000 [[megawatts]] of power generating capacity by 2010 at a probable cost of US$2 billion, but progress has been slowed by a lack of investment capital.{{Update after|2010|11}}<ref name=cp10/> Power plants in Syria are undergoing intensive maintenance, and four new generating plants have been built.<ref name=cp10/> The power distribution network has serious problems, with transmission losses estimated as high as 25 percent of total generated capacity as a result of poor quality wires and [[transformer]] stations.<ref name=cp10/> A project for the expansion and upgrading of the power transmission network is scheduled for completion in 2005.{{Update after|2010|11}}<ref name=cp10/>

As of May 2009 it was reported that the [[Islamic Development Bank]] and the Syrian government signed an agreement stating that the bank would provide a €100 million loan for the expansion of Deir Ali power station in Syria.<ref>{{Cite web|url=http://infoprod.co.il/main/siteNew/index.php?langId=1&mod=article&action=article&Admin=qwas&stId=260|title=Islamic Bank to loan Syria €100M}}{{Dead link|date=May 2023 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

==== Nuclear energy ====
[[Syria]] abandoned its plans to build a VVER-440 reactor after the [[Chernobyl accident]].<ref name="nip102">{{cite web
 | url = http://world-nuclear.org/info/inf102.html
 | title = Emerging Nuclear Energy Countries
 | date = April 2009
 | work = [[World Nuclear Association]]
 | access-date = 2009-04-22
 | archive-date = 29 October 2019
 | archive-url = https://web.archive.org/web/20191029134444/https://world-nuclear.org/information-library/country-profiles/others/emerging-nuclear-energy-countries.aspx
 | url-status = dead
 }}</ref> The plans for a nuclear program were revived at the beginning of the 2000s when Syria negotiated with Russia to build a nuclear facility that would include a nuclear power plant and a seawater atomic [[desalination]] plant.<ref name=nti>{{Cite journal | title = Syria Profile. Nuclear Overview | publisher = Nuclear Threat Initiative | date = November 2006 | url = http://www.nti.org/e_research/profiles/Syria/Nuclear/index.html | access-date = 2007-07-15 | archive-url = https://web.archive.org/web/20110818103811/http://www.nti.org/e_research/profiles/Syria/Nuclear/index.html | archive-date = 18 August 2011 | url-status = dead }}</ref>

===Industry and manufacturing===
{{Main|Industry in Syria}}
The industrial sector, which includes mining, manufacturing, construction, and petroleum, accounted for 27.3 percent of gross domestic product (GDP) in 2010 and employed about 16 percent of the labor force.<ref name="CIA World Fact Book – Syria's Economy"/> The main industrial products are petroleum, textiles, food processing, beverages, tobacco, phosphate rock mining, cement, oil seeds crushing, and car assembly.<ref name="CIA World Fact Book – Syria's Economy"/> Syria's manufacturing sector was largely state dominated until the 1990s, when economic reforms allowed greater local and foreign private-sector participation. Private participation remains constrained, however, by the lack of investment funds, input/output pricing limits, cumbersome customs and foreign exchange regulations, and poor marketing.<ref name=cp10/>

Because land prices are not controlled by the state, [[real estate]] is one of the few domestic avenues for investment with realistic and safe returns. Activity in the construction sector tends to mirror changes in the economy. Investment Law No. 10 of 1991, which opened the country to foreign investment in some areas, marked the beginning of a strong revival, with growth in real terms increasing over 2001 and 2002.<ref name=cp10/>

===Services===
Services accounted for 60.4% of [[gross domestic product]] (GDP) in 2017<ref name="CIA World Fact Book – Syria's Economy" /> and employed 67% of the labor force, including government, in 2008.<ref name=cp11>[https://www.cia.gov/the-world-factbook/countries/syria/ The World Factbook]. Cia.gov.</ref> In May 2009, it was reported that Damascus office prices were skyrocketing.<ref>{{Cite web|url=http://infoprod.co.il/main/siteNew/index.php?langId=1&mod=article&action=article&Admin=qwas&stId=254|title=Damascus office prices are skyrocketing}}{{Dead link|date=May 2023 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

====Banking and finance====
[[File:BankSharqAndBlueTower.jpg|thumb|280px|Bank Al-Sharq and the [[Blue Tower Hotel]] in Damascus]]

{{main|Banking in Syria}}

The [[Central Bank of Syria]] began operations in 1959. It controls all foreign exchange and trade transactions and gives priority to lending to the [[public sector]]. The Central Bank has been subject to US sanctions since May 2004, which has accused the Bank of [[money laundering]].<ref>{{cite web|url=https://obamawhitehouse.archives.gov/the-press-office/2011/04/29/executive-order-13572-blocking-property-certain-persons-respect-human-ri |title= U.S. trade and financial sanctions against Syria
 |date=29 April 2011|via=[[NARA|National Archives]] |work=[[whitehouse.gov]] |access-date=2012-08-24}}</ref> These US sanctions may have increased the role of Lebanese and European banks because a ban on transactions between U.S. financial institutions and the Central Bank of Syria created an increase in demand for intermediary sources for US$ transfers.{{Update after|2010|11}}<ref name=cp11/> The United States, European Union, [[Arab League]] and Turkey all also imposed sanctions on the Central Bank because of the Civil War.<ref>{{cite news | url=https://www.reuters.com/article/us-syria-arabs-sanctions-idUSTRE7AR1A020111128 | work=Reuters | first=David | last=Cutler | title=Factbox: Sanctions imposed on Syria | date=28 November 2011 | access-date=1 July 2017 | archive-date=24 September 2015 | archive-url=https://web.archive.org/web/20150924160722/http://www.reuters.com/article/2011/11/28/us-syria-arabs-sanctions-idUSTRE7AR1A020111128 | url-status=live }}</ref>
<ref>{{cite news| url=https://www.foxnews.com/world/turkey-slaps-economic-sanctions-on-syria/ | work=Fox News | title=Turkey Slaps Economic Sanctions on Syria | date=30 November 2011}}</ref>

The six specialized [[Public bank|state-owned banks]] – the Central Bank of Syria, [[Commercial Bank of Syria]], Agricultural Co-Operative Bank, [[Industrial Bank (Syria)|Industrial Bank]], Popular Credit Bank, and Real Estate Bank – are major financial operators. They each extend funds to, and take [[Deposit (finance)|deposit]]s from, a particular sector. The Industrial Bank also is directed more toward the public sector, although it is [[Market capitalization|under-capitalized]]. As a result, the private sector often is forced to bank abroad, a process that is more expensive and therefore a poor solution to industrial financing needs. Many [[business people]] travel abroad to deposit or borrow funds. It is estimated that Syrians have deposited US$6 billion in [[Lebanon|Lebanese]] banks.

In the 2000s, Syria started reforms in the [[financial sector]], including the introduction of [[private banks]] and the opening of the [[Damascus Securities Exchange]] in March 2009.<ref name="AP">[https://web.archive.org/web/20120212075555/http://www.google.com/hostednews/afp/article/ALeqM5gPsB6CSsyXUgWdxEsC0B_O-jqV-w "Syria launches first stock exchange"]. Google, AFP (10 March 2009).</ref> In 2001, Syria legalized private banks and the sector, while still nascent, has been growing.<ref name=USState2010/> Foreign banks were given licenses in December 2002, under Law 28 March 2001 which allows the establishment of private and [[joint-venture]] banks. Foreigners are allowed up to 49% ownership of a bank, but may not hold a controlling stake.<ref name=cp11/> As of January 2010, 13 private banks had opened, including two [[Islamic bank]]s.

Syria took gradual steps to [[Economic liberalization|loosen controls]] over [[foreign exchange market|foreign exchange]]. In 2003, the government canceled a law that criminalized private sector use of foreign currencies, and in 2005 it allowed licensed private banks to sell specific amounts of foreign currency to Syrian citizens under certain circumstances and to the private sector to finance imports. In October 2009, Syria further loosened its restrictions on currency transfers by allowing Syrians travelling abroad to withdraw the equivalent of up to US$10,000 from their Syrian pound accounts. In practice, the decision allows local banks to open accounts of a maximum of US$10,000 that their clients can use for their international [[payment card]]s. The holders of these accounts will be able to withdraw up to US$10,000 per month while travelling abroad.<ref name=USState2010/>

To attract investment and to ease access to credit, the government allowed investors in 2007 to receive loans and other credit instruments from foreign banks, and to repay the loans and any accrued interest through local banks using project proceeds. In February 2008, the government permitted investors to receive [[loan]]s in foreign currencies from local private banks to finance [[capital investment]]s. Syria's [[exchange rate]] is fixed, and the government maintains two official rates—one rate on which the budget and the value of imports, customs, and other official transactions are based, and a second set by the [[Central Bank of Syria|Central Bank]] on a daily basis that covers all other [[financial transaction]]s. The government passed a law in 2006 which permits the operation of private money exchange companies. However, there is still a small [[black market]] for foreign currency.<ref name=USState2010/>

Since the start of the [[Syrian Civil War]] in 2011, there has been a [[capital flight]] to nearby countries. Syria has been subject to sanctions by United States, Canada, European Union, [[Arab League]] and Turkey because of the civil war.<ref>{{cite news | url=https://www.reuters.com/article/us-syria-arabs-sanctions-idUSTRE7AR1A020111128 | work=Reuters | first=David | last=Cutler | title=Factbox: Sanctions imposed on Syria | date=2011-11-28 | access-date=1 July 2017 | archive-date=24 September 2015 | archive-url=https://web.archive.org/web/20150924160722/http://www.reuters.com/article/2011/11/28/us-syria-arabs-sanctions-idUSTRE7AR1A020111128 | url-status=live }}</ref><ref>{{cite news| url=https://www.foxnews.com/world/turkey-slaps-economic-sanctions-on-syria/ | work=Fox News | title=Turkey Slaps Economic Sanctions on Syria | date=2011-11-30}}</ref><ref>{{cite web |url=http://www.defenddemocracy.org/canadian-sanctions/ |title=Canadian Sanctions &#124; Foundation for Defense of Democracies |publisher=Defenddemocracy.org |access-date=2013-02-04 |archive-url=https://web.archive.org/web/20180806163208/http://www.defenddemocracy.org/canadian-sanctions/ |archive-date=6 August 2018 |url-status=dead }}</ref> The currency of Syria is the [[Syrian pound]] (SYP). The pound's official exchange rate has deteriorated significantly, falling from £S 47 for US$1 before the civil war to £S 1,256 as in June 2020.<ref>{{cite news |last1=Morad |first1=Abood |title=المركزي : تعديل سعر صرف الليرة السورية مقابل الدولار |url=http://jamahir.alwehda.gov.sy/economy/117422-%D8%A7%D9%84%D9%85%D8%B1%D9%83%D8%B2%D9%8A-%D8%AA%D8%B9%D8%AF%D9%8A%D9%84-%D8%B3%D8%B9%D8%B1-%D8%B5%D8%B1%D9%81-%D8%A7%D9%84%D9%84%D9%8A%D8%B1%D8%A9-%D8%A7%D9%84%D8%B3%D9%88%D8%B1%D9%8A%D8%A9-%D9%85%D9%82%D8%A7%D8%A8%D9%84-%D8%A7%D9%84%D8%AF%D9%88%D9%84%D8%A7%D8%B1.html |access-date=17 June 2020 |work=صحيفة الجماهير {{!}} حلب |date=17 June 2020 |language=ar-aa |archive-date=18 June 2020 |archive-url=https://web.archive.org/web/20200618231321/http://jamahir.alwehda.gov.sy/economy/117422-%D8%A7%D9%84%D9%85%D8%B1%D9%83%D8%B2%D9%8A-%D8%AA%D8%B9%D8%AF%D9%8A%D9%84-%D8%B3%D8%B9%D8%B1-%D8%B5%D8%B1%D9%81-%D8%A7%D9%84%D9%84%D9%8A%D8%B1%D8%A9-%D8%A7%D9%84%D8%B3%D9%88%D8%B1%D9%8A%D8%A9-%D9%85%D9%82%D8%A7%D8%A8%D9%84-%D8%A7%D9%84%D8%AF%D9%88%D9%84%D8%A7%D8%B1.html |url-status=dead }}</ref><ref name="www.barrons.com">{{cite news |last1=Presse |first1=AFP-Agence France |title=Syria Devalues Currency As New US Sanctions Hit |url=https://www.barrons.com/news/syria-devalues-currency-as-new-us-sanctions-hit-01592388004 |access-date=17 June 2020 |work=barrons.com}}</ref> On another hand, while its exchange rate for money transfer is £S 1,250 for US$1,<ref name="www.barrons.com"/> its non-official exchange rate (black market) plunged to around £S 4,000 for US$1 in March 2021.<ref>{{cite news |title=Syrian pound hits new low in ripple effect from currency woes in neighboring Lebanon |url=https://english.alarabiya.net/business/economy/2021/03/04/Syrian-pound-hits-new-low-in-ripple-effect-from-currency-woes-in-neighboring-Lebanon |work=Al Arabiya English |date=4 March 2021 |language=en}}</ref>

====Tourism====
{{main|Tourism in Syria}}
Tourism in Syria has greatly reduced as a result of the [[Syrian Civil War]] and its associated [[Refugees of the Syrian Civil War|refugee crisis]]. Tourism has been further impacted by the [[COVID-19 pandemic in Syria|outbreak of COVID-19]] that started in March 2020. The [[Economic sanctions|international economic sanctions]] imposed on Syria and the sharp drop in the value of the [[Syrian pound]] also adversely impact tourism in Syria.

==Labour==
Syria has a population of approximately 21 million people, and [[Politics of Syria#Government administration|Syrian government]] figures place the [[population growth]] rate at 2.37%, with 65% of the population under the age of 35 and more than 40% under the age of 15.<ref name=USState2010/> Each year more than 200,000 new job seekers enter the Syrian [[job market]], but the economy has not been able to absorb them.<ref name=cp12/> In 2017, the Syrian [[labor force]] was estimated to total about 3.767 million people.<ref name="CIA World Fact Book – Syria's Economy" /> An estimated 67 percent worked in the [[services sector]] including government, 17 percent in agriculture, and 16 percent in industry in 2008.<ref name="CIA World Fact Book – Syria's Economy"/> Government and [[public sector]] employees constitute about 30% of the total labor force and are paid very low salaries and wages.<ref name=USState2010/>

According to Syrian Government statistics, the unemployment rate in 2009 was 12.6%; however, more accurate independent sources place it closer to 20%.<ref name=USState2010/> About 70 percent of Syria's workforce earns less than US$100 per month.<ref name=cp12/> Anecdotal evidence suggests that many more Syrians are seeking work over the border in [[Lebanon]] than official numbers indicate.<ref name=cp12/> In 2002 the Unemployment Commission (UC) was established, tasked with creating several hundred thousand jobs over a five-year period.<ref name=cp12>Syria country profile, p. 12.</ref> As of June 2009 it was reported that some 700,000 households in Syria – about 3.5 million people – have no income.<ref>{{cite news |last1=Peskin |first1=Doron |title=Syria: 160 villages abandoned due to famine |url=https://www.ynetnews.com/articles/0,7340,L-3735573,00.html |access-date=30 August 2018 |work=YNet news |date=23 June 2009}}</ref> Government officials acknowledge that the economy is not growing at a pace sufficient to create enough new jobs annually to match population growth. The [[UN Development Programme]] (UNDP) announced in 2005 that 30% of the Syrian population lives in poverty and 11.4% live below the [[subsistence level]].<ref name=USState2010/>

The [[Ministry of Social Affairs and Labor (Syria)|Ministry of Social Affairs and Labour]] is responsible.

==Opportunity cost of conflict==
A report by [[Strategic Foresight Group]], an India-based [[think tank]], calculated the opportunity [[cost of conflict]] for the Middle East for 1991–2010 at US$12 trillion in 2006 dollars.<ref name="StrategicForesight" /> Syria's share in this was US$152 billion, more than four times the projected 2010 GDP of US$36 billion.<ref name="StrategicForesight">{{cite press release | url=http://www.strategicforesight.com/Cost%20of%20Conflict%20-%206%20pager.pdf | title=Cost of Conflict in the Middle East | publisher=Strategic Foresight Group | access-date=3 January 2016 | archive-date=2012-05-19 | archive-url=https://web.archive.org/web/20120519032453/http://www.strategicforesight.com/Cost%20of%20Conflict%20-%206%20pager.pdf | url-status=unfit}}</ref>

The Syrian Center for Policy Research stated in March 2015 that, by then, nearly three million Syrians had lost their jobs because of the civil war, causing the loss of the primary source of income of more than 12 million people; unemployment levels "surged" from 14.9 percent in 2011 to 57.7 percent at the end of 2014.<ref name="AJ-Poverty" /> As a result, 4 in 5 Syrians were by then living in poverty, with 30 percent of the population living in "[[extreme poverty|abject poverty]]" and frequently unable to meet basic household [[Hunger in Syria|food needs]].<ref name="AJ-Poverty">{{cite news | url=http://www.aljazeera.com/news/middleeast/2015/03/war-plunged-syrians-poverty-150312022852894.html | title=Aid agencies slam UN Security Council over Syria | publisher=Al Jazeera Media Network | work=Al Jazeera | date=12 March 2015 | access-date=12 March 2015}}</ref> An estimate from 2023 estimated the population below the [[poverty threshold]] in Syria to be 90%.<ref>{{Cite web |date=2023-08-16 |title=Syria doubles public-sector pay as economy sinks |url=https://www.bbc.com/news/world-middle-east-66526132 |access-date=2023-08-19 |website=BBC News |language=en-GB}}</ref>

==See also==
* [[Banque de Syrie et du Liban]]
*[[Corruption in Syria]]
*[[List of companies of Syria]]
*[[Ministry of Economy and Trade (Syria)]]

==References==
{{reflist}}

==Notes==
{{reflist|group=note}}

===Works cited===
*[http://memory.loc.gov/frd/cs/profiles/Syria.pdf Syria country study]. [[Library of Congress]] [[Federal Research Division]] (April 2005). {{PD-notice}}

==External links==
*[https://2009-2017.state.gov/r/pa/ei/bgn/3580.htm US Department of State]
*{{ArabDecision|inst_brows_3_5_12_1_3_0.htm|Syria's Economic System}}
*{{ArabDecision|inst_brows_3_5_8_1_3_0.htm|Syria's Unions and Business Groups}}
*[http://lebanese-economy-forum.com/world-facts/show/sy-economy/ Economy of Syria] textual and chart data from the world bank and CIA factbook, hosted by the Lebanese Economy Forum

{{Syria topics}}
{{Asia in topic|Economy of}}

{{Commons category|Economy of Syria}}

{{DEFAULTSORT:Economy of Syria's}}
[[Category:Economy of Syria| ]]
[[Category:Economy of the Arab League]]
[[Category:Syrian billionaires]]