Syria

Capital: Damascus

Local time:
It is %T:%M %A in Damascus

GDP growth rate: 3.4% in 2013

FDI stock: 8 715 million USD in 2010

Economic trends

While the country's economic situation had improved since the wave of economic liberalization launched under the presidency of Bashar al-Assad, with GDP more than doubling in five years and the growth rate rising to around 4%, the economy is currently on the brink of collapse. Consumption has dropped, trade is stagnating, inflation is increasing, tourism has collapsed, oil production is falling ...

The popular uprising, brutally suppressed, resulted in an escalation of violence. In addition, since the fighting started in March 2011, economic sanctions against the country by Europe, the United States and the Arab League countries have had a severe impact on local businesses. The UN Security Council resolution, calling for the resignation of Bashar al-Assad, was vetoed by Russia and China.

The social situation had been serious already before the crisis: a third of the population lived below the poverty line, unemployment affected 20% of the population (75% of the unemployed were aged 15 to 24 years), and economic growth lagged behind the very high rate of population growth (3.3% / year).

Main branches of industry

Syria, still in full economic boom, exports mostly raw materials (crude oil, cotton, cereals and phosphates). Agriculture constitutes a pillar of its economy, given its large population and its struggle to reach self-sufficiency. The agricultural sector contributes nearly 22% to GDP and employs one-third of the active population; however, it remains a fragile sector, since it directly depends on climatic conditions and especially on water scarcity, key regional factor. Cropland has increased by more than 50% since 1970, largely because of government incentives and more efficient use of irrigation methods. The principal crops include wheat, potatoes, sugar beet, and barley. Large numbers of poultry, cattle, and sheep are also raised.

Industry has a relatively important place thanks to the textile, chemical and of course oil industry, the latter representing 14% of the Syrian GDP. The hydrocarbon sector is very important for the Syrian economy and contributes up to 65% to the country’s exports. Nevertheless, the country’s oil reserves are diminishing from year to year and although the increase of barrel price enabled an average growth of 4.5% in recent years, experts expect the Syrian oil wells to dry up by 2020. The manufacturing sector contributes 25% to GDP, with the production of handicrafts such as silk, leather and glass products.

The tertiary sector is well established (mainly tourism) and contributes more than 50% to GDP.

International trade

Since the late 1990s, Syria has been very open to international trade. In 2005, is signed a free-trade agreement with Turkey (in operation since 2007) and joined the GAFTA (Great Arab Free Trade Area), a regional free-trade zone, while an association agreement with the European Union was drafter in 2005, then in 2008 and has been ready to be signed since the fall of 2009.

Foreign trade represents about 70% of the country’s GDP. Although trade had been growing in the recent years, it has now dropped because of the serious political, social and economic crisis faced by the country and economic sanctions imposed by its trading partners (including the Arab embargo).

Syria's main exports are its oil resources (42% of exports in 2008), textile, livestock and vegetables, as well as food products. Its main clients are the Arab countries, up to 51% with a particular intensification of trade relations with Iraq, Lebanon and Algeria, followed by the European Union with up to 34%, with Germany and Italy in the lead and France only taking the 6th place. In terms of imports, the most important position belongs to oil products, with up to 35%, and also to metals and fabricated metal products, followed by chemical industry, livestock and consumer goods. The two main suppliers are the European Union (29%) and Asia (25%), respectively.