The Syrian economy is expected to grow modestly in 2025, driven by the new government’s policies aimed at attracting foreign investment, the World Bank stated.
The economy is expected to expand by 1% this year after contracting 1.5% in 2024, following the outbreak of the conflict in 2011.
Earlier this month US President Donald Trump signed an executive order terminating a US sanctions programme on Syria, a move likely to ease access to global funding.
The new government, led by Ahmed Al-Sharaa, has begun implementing unified macroeconomic, fiscal and monetary strategies aim to restore investor confidence and ensure better management of public funds, according to the World Bank.
“Syria today is a land of opportunities, with immense potential across every sector. The government is actively driving reforms to deliver real results and visible progress on the ground”, said Syrian Finance Minister Yisr Barnieh.
The country has intensified its regional outreach with improved ties to Turkey and some Gulf nations, which will encourage capital inflows. However, the outlook faces security challenges, liquidity constraints, and suspended foreign assistance.
While the easing of sanctions provides some upside potential, progress remains limited as frozen assets and restricted access to international banking continue to hinder energy supply, foreign assistance, humanitarian support, and trade and investment.
The country’s GDP has cumulatively contracted by more than 50% since 2010. The gross national income per capita declined to $830 in 2024 – below the international threshold for low-income countries.
Extreme poverty affects one in four Syrians, while two-thirds live below the lower middle-income poverty line, the World Bank said.
“Economic data for Syria is extremely scarce and hard to come by,” said Jean-Christophe Carret, Middle East division director, World Bank.
Security challenges persist and securing oil imports will be a major challenge for the new government, potentially driving up fuel prices and inflation, he said.
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