World Bank says Syrian economy faces narrow recovery
QAMISHLI, Syria (North Press) – The World Bank warned on Tuesday that Syria’s economy remains fragile despite early signs of stabilization following the regime’s ousting in December 2024.
In a new report, the Bank revealed that GDP contracted by 53 percent between 2010 and 2022, classifying Syria as a low-income country, and sees only a modest rebound ahead.
The report forecasted real GDP growth of 1.0 percent in 2025, after an estimated 1.5 percent decline in 2024, but warned that income per capita will likely continue to shrink and extreme poverty rise, as population growth outpaces gains.
Syria’s economic structure has been reshaped by conflict and sanctions: tourism, energy, and manufacturing have collapsed, while dependence on imports—especially fuel and food—has surged, according to the report.
The report indicated that Syrian pound’s sharp collapse eroded price stability, though it has appreciated 29 percent since November 2024, thanks in part to returning expatriates and eased foreign exchange controls.
The transitional government now controls 78 percent of the population and 60 percent of economic activity, but only 9 percent of oil production remains under its control, with the vast majority is under the Syrian Democratic Forces (SDF), leaving energy security uncertain, the report read.
Also, the budget deficit stands at 6 percent of GDP, and external debt hovers at 104 percent of GDP.
With security risks looming and sanctions only partially lifted, the report cautions that gains will remain fragile unless institutional reform and reconstruction efforts are sustained.