Rebuilding Syria’s economy: Can stability return after war?
Rebuilding Syria’s economy: Can stability return after war?
Syria’s new leadership faces an economy devastated by war and sanctions, with inflation and a decimated currency.
Author: Unknown
Published on: 08/01/2025 | 00:00:00
AI Summary:
The Syrian pound’s value has been drained and inflation reached the triple digits. The Central Bank of Syria had just $200m in foreign exchange reserves. At the end of 2010, it had $17bn. Transition government has reopened the Nasib border crossing with Jordan. They have also told shops and government ministries to stay open. War and sanctions Syria is endowed with natural resources, has a strategic position on the Mediterranean Sea, and benefits from a 94 percent literacy rate. US and europe inflicted crippling sanctions in 2011 denying Damascus access to capital markets, Western aid and commodity revenues. From 2011 to 2021, he estimated that Syria’s tax revenue to GDP ratio fell from 11 to 5 percent, or just $4.5bn, in 2021. For years, Russia and Iran propped up the al-Assad regime, helping it bypass Western sanctions. US officials have also begun talks with Qatar and the United Arab Emirates about relaxing financial restrictions on Damascus. But al-Sharaa has also said it will take up to four years for Syria to hold its first elections. Before the war, Syria was able to leverage its strategic location – linking Asia with Europe – by exporting natural resources, especially oil. Perkins doubts if investments from Türkiye alone could galvanise near-term growth. Perkins: "any serious economic program must begin with an easing of all international sanctions"
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