The World Bank stated on Monday it anticipated Syria’s gross home product (GDP) to develop modestly by 1% in 2025, following a contraction of 1.5% final yr because it cited elevated regional engagement, particularly from Türkiye and a few Gulf states, alongside the easing of sanctions, may facilitate the restoration and entice investments.
“The easing of sanctions provides some upside potential; however, 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 World Bank stated in an announcement.
The “Syria Macro Fiscal Assessment 2025” takes inventory of Syria’s latest financial trajectory amid the continued political transition and regional instability.
The World Bank, within the abstract of the report, recalled that fourteen years of battle have devastated Syria’s economic system, with GDP cumulatively contracting by greater than 50% since 2010.
“Economic data for Syria is extremely scarce and hard to come by. This macro-fiscal assessment bridges critical information gaps and provides an important foundation for policy dialogue to revitalize economic growth and bring prosperity to Syria,” stated Jean-Christophe Carret, World Bank Middle East Division Director.
Recent easing of the U.S. and European Union sanctions is anticipated to assist revive financial exercise and restoration in Syria following the autumn of long-time ruler Bashar Assad late final yr.
The lender highlighted that the brand new authorities “has recently taken measures to unify the country’s macroeconomic, fiscal, and monetary policies, focusing on good governance of public funds and sound fiscal and monetary management.”
“Efforts are also being made to attract much-needed foreign investment and aid commitments to support economic recovery,” it added.
“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,” stated Yisr Barnieh, the nation’s finance minister.
“This report highlights Syria’s enormous economic challenges, including from sanctions, but also provides important data and analysis that supports evidence-based policy making. We are very optimistic and confident that our economy will soon achieve higher growth and resume a path of sustainable development.”
However, the report additionally cited that the outlook stays topic to sure dangers as nicely.
“Security challenges persist and securing oil imports will be a major challenge for the new government, potentially driving up fuel prices and inflation. On the upside, an agreement on resource-sharing or governance between the transitional government and northeastern authorities could boost national oil and gas production,” the report stated.
“Additionally, increased regional engagement – especially from Türkiye and some Gulf states – alongside the easing of sanctions, could facilitate the recovery and attract investments. The growing number of returning refugees and internally displaced people may also support medium-term economic revival, provided sanctions are eased to enable investment and trade,” it added.
Source: www.dailysabah.com