Economy of Syria

Syria is a middle-income country with a diversified economy based on agriculture, industry, and energy. Agriculture contributes some 17 percent of Syria's GDP, compared to over 24 percent from industry, including oil, and around 54 percent from services.

According to IMF data, the Syrian economy expanded by 3.4 percent in 2010 after growing 5.9 percent in 2009.

The oil sector contributes about 20 per cent of the government’s revenues and about 40 per cent of its export receipts, according to data from the World Bank. Oil, exports of services and remittances are the main sources of foreign earnings and enable the government to finance its imports.

The Syrian economy is totally exhausted after several years of revolution. All economic indicators are in the red in the violence-ravaged country.  GDP has collapsed, inflation has skyrocketed, unemployment has risen, and the current account deficit continues to widen.

These problems are compounded by EU sanctions, especially on the export of oil. The Syrian Center for Policy Research estimated that GDP has contracted 3.7% in 2011 and 18.8% in 2012 against original projections of an increase of 7.1% and 5.6%, respectively.

Other indices are faring no better.  Per capita income was forecast to drop from $4,784 in 2010 to $3050 in 2012.  The budget deficit was forecast to grow significantly, and public debt, which represented 22.6 percent of GDP in 2010, was expected to exceed 50 percent in 2012 due to a 40 percent decrease in budget revenues and a 20 percent increase in spending.

The Syrian economy is running at 30 percent capacity, and the banking system in the shadows.  Public banks are under international sanctions, and private establishments are idling due to caution.  The currency has eroded in value 50 percent against the dollar during the first two years of the turmoil despite two sales of $3 billion in gold and silver by the Central Bank.  Total reserves, which stood at $19.5 billion, were predicted to fall to $9.6 billion in 2012 according to EIU estimates.
The conflict is expected to have an extended, tragic impact on the Syrian economy, “destroying economic, social, and human capitals.”  During the first two years of the turmoil the total loss to the economy was estimated at $48.4 billion, or 81.7% of Syria’s 2010 GDP in 2000 constant prices.  GDP loss represents only half of this amount, with 47% being damage to capital stock and 7% being increased military expenditure.

The negative social and economic consequences of the violence are expected to have long-term consequences.  The population growth has shrunk from 2.45% growth in 2010 to 2.5% shrinkage in 2012, with much of the educated, professional population taking flight. 

It is also worth noting the impact that sanctions have had on ordinary Syrian citizens.  An estimated 28.3% of the first two years’ GDP loss is due to sanctions.  Out of the 3.1 million newly poor individuals, 877,000 can be attributed to the effect of sanctions.  Exports declined by 52% for Arab countries, 93% for EU countries, and 82% for Turkey.  The sanctions make it much more difficult for Syria to import essential goods, including fuel and medicines, making these a luxury for many.

Essential Information

Area: 185,180 sq km
Population: 22,126 million
Capital: Damascus
Principal Towns: Aleppo, Homs, Latakia, Hama.
Languages: Arabic is spoken throughout most of the country, but Kurdish is widely used along the northern frontier and Armenian in the cities. English and French are also spoken.
Gross Domestic Product: $53 billion.
GDP per capita: $3050.
International Reserves: $9.6 billion (2012 est.).
Climate: Mediterranean; hot summers with substantial rain and snow in the winter.
Currency: 1$ = 70.2 Syrian Pound (SYP).

DEMOGRAPHY
Population: 22,457,336 (2012 est.) note: in addition, about 40,000 people live in the Israeli-occupied Golan Heights - 20,000 Arabs (18,000 Druze and 2,000 Alawites) and about 20,000 Israeli settlers (July 2009 est.).

Age Distribution (2012 est.)
0-14 years: 33.9%
15-24 years: 20.8%
25-54 years: 36.9%
55-64 years: 4.6%
65 years and over: 3.9%  
 
Population Growth: -0.797% (2012 est.)
Education: 79.6% of total population age 15 and over can read and write

NATURAL RESOURCES
Fossil Fuel: Petroleum
Minerals
Phosphates, chrome and manganese ores, asphalt, iron ore, rock salt, marble, gypsum.
Phosphate is the country's mineral resource. Syria's phosphate reserves - estimated by the US Geological Survey to be 1.5bn tonnes - are not as plentiful as Morocco's, which holds around 32% of the world's known stocks, or even of China's, which has estimated reserves of 13bn tonnes, they still represent a major asset.

Visa Requirements:

All non-Syrian and non-Arabic passport holders require visas. These can be obtained from the consulates abroad.

Independence Day of Syria, 17 April                

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Diplomatic representation of Syria in Switzerland