Syria: Economic and Political Overview

Economic Overview

Syria has been plagued by a devastating war since 2011. According to a UN Development Programme report, the war-damaged economy of Syria will take decades to reach pre-conflict levels unless there is a significant acceleration in growth. The country's GDP has dropped to less than half of its 2011 value, and unemployment has tripled. However, the report suggests that with a sixfold increase in annual economic growth, Syria could recover within a decade. However; at current growth rates, Syria’s economy will not regain its pre-conflict GDP level before 2080. The conflict has severely weakened Syria's ability to absorb external economic shocks. In recent years, the economy has faced multiple challenges, including the spillover effects from the economic crises in neighbouring Lebanon and Turkey since late 2019, the COVID-19 pandemic and a subsequent cholera outbreak, the surge in global commodity prices following the war in Ukraine, the February 2023 earthquakes in Syria and Turkey, and more recently, the increased attacks and trade disruptions linked to the ongoing Middle East conflict since October 2023.

In December 2024, a coalition led by Hay'at Tahrir al-Sham (HTS) swiftly overthrew President Bashar al-Assad, ending over six decades of Ba'ath Party rule. Ahmed al-Sharaa, leader of HTS, was appointed President during the transitional period. The new government has initiated significant reforms, including forming a diverse cabinet with representatives from various religious and ethnic groups, such as Hind Kabawat, a Catholic woman appointed as Minister of Labour and Social Affairs. Efforts are underway to rebuild international relations and seek the removal of longstanding sanctions that have strained Syria's economy. Additionally, the government has engaged in negotiations with Kurdish forces to integrate Kurdish fighters into the Syrian army and grant constitutional rights to Kurds. However, challenges persist, including internal resistance from regime loyalists and regional tensions, such as border conflicts with neighbouring Lebanon. According to the World Bank's latest figures, real GDP is expected to decline by 1.5% in 2024 and 1% in 2025, following a 1.2% contraction in 2023.
 Syria's external debt is substantial relative to its ability to repay. The new government has stated that Syria owes between USD 20 billion and USD 23 billion, a significant burden compared to the country's GDP of USD 17.5 billion in 2023, according to the World Bank. Restructuring Syria's debt will be complex. The exact amount of external debt remains unclear, with reports suggesting it could be much higher than the government's estimate, possibly reaching USD 30 billion to USD 50 billion, including claims from Iran and Russia. The composition of creditors complicates restructuring; most debt is likely owed to official sources like Iran and Russia, with minimal commercial debt. Additionally, uncertainty around which entities (government, central bank, state-owned enterprises) hold the debt complicates the process, as different debts may require different treatment. Syria may also refuse to repay Assad-era debt.

On the humanitarian level, the situation is catastrophic. In line with the ongoing decline in per-capita GDP, extreme poverty is projected to rise to 33.1% in 2024 and 37.4% in 2025, pushing more than a third of the population into extreme poverty. The Syrian conflict has caused one of the largest displacement crises since World War II. By the end of 2023, over half of Syria’s pre-conflict population had been displaced, including 7.2 million internally displaced persons and 6.5 million refugees abroad. The already precarious situation of Syrian households has escalated, as reflected in heightened vulnerability. This rise in vulnerability has coincided with an uptick in labour force participation, particularly among workers on the fringes of the labour market, including women, youth, and the elderly, who face limited earning prospects. Meanwhile, government spending continued to be constrained by low revenues and the lack of access to financing. The current account of Syria is expected to remain firmly in deficit because of a high trade deficit, contributing to the drain of foreign exchange reserves.

Main Sectors of Industry

Agriculture represents around 43.1% of Syria’s GDP, a share that has doubled since the beginning of the civil war in 2011 and is estimated to employ 15% of the workforce (World Bank, latest data available). Agriculture has always been a fragile sector since it directly depends on climate conditions and especially on water scarcity, a key regional factor. Moreover, between 2011 and 2016, Syria's rural population declined by 50%, causing major losses in crop and livestock production, damage to irrigation systems and farmland, and rising costs of essentials like seeds, fertilisers, and pesticides. Repeated droughts have worsened the situation, increasing the country’s vulnerability to climate change and discouraging investment in agriculture. Syria covers 18.5 million hectares, with about 32.8%—around 6.5 million hectares—classified as arable or forested. The rest consists mainly of arid land in the Syrian Desert. Spices, olive and olive oil, cotton, wheat and barley are among the main crops and exports. According to FAO, Syria's cereal production in 2024 was estimated at 3.4 million tonnes—13% below the five-year average and 33% below pre-crisis levels—mainly due to poor rainfall, high temperatures, disease outbreaks, and high input costs.

Industry as a whole accounts for 12% of the economy and employs around 22% of the workforce (World Bank). The hydrocarbon sector is essential to the Syrian economy and contributes up to 65% of the country’s exports. Since the start of the conflict, industrial production declined, affected by shortages in fuel and power, limited access to capital, severe destruction of infrastructure, and the relocation of major manufacturing bases. The public sector has a prominent role in the Syrian industry. Syria's public industrial sector is experiencing structural changes, with governmental consideration of various mergers. As an example, in early January 2024, two entities were merged under a newly established General Company for Cement and Building Materials Manufacture and Marketing.

The Syrian tertiary sector encompasses a range of industries including retail, tourism, telecommunications, finance, and healthcare, playing a pivotal role in the country's economy. Overall, the sector accounts for 44.9% of GDP and 63% of total employment. Before the 2011 uprising, tourism stood as one of Syria's most rapidly advancing economic sectors. By 2010, the country welcomed 9.45 million visitors, making tourism the second-largest foreign currency earner after oil exports, contributing approximately 13.7% to the nation's GDP. Syria’s financial and banking sector includes banks, microfinance institutions, and exchange offices regulated by the Central Bank. It also comprises the Damascus Securities Exchange, overseen by the Financial Markets Commission, and insurance companies under the Insurance Supervisory Commission.

Source: World Bank, Latest data available.

Indicator of Economic Freedom

Score:

N/A/100

World Rank:

N/A

Regional Rank:

N/A

Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation

Sources of General Economic Information

Ministries

Ministry of the Economy
Ministry of Finance (in Arabic)

Statistical Office

Central Bureau of Statistics

Central Bank

Central Bank of Syria (in Arabic)

Stock Exchange

Damascus Securities Exchange

Other Useful Resources

Nations Online
Syria Report

Main Online Newspapers

Syrian Arab News Agency
The Syrian Observer

Economic Portals

Library of Congress
Dmoz
Araboo

Political Outline

Current Political Leaders

President: vacant; former President Bashar al-ASAD was overthrown by Islamist rebels on 8 December 2024
Prime Minister: Muhammad al-BASHIR (since 8 December 2024)

Next Election Dates

Presidential: 2028
Legislative: July 2028

Main Political Parties

Syria's political landscape has undergone significant transformations following the ousting of President Bashar al-Assad in December 2024. The dissolution of the Ba'ath Party, which had dominated Syrian politics for decades, has paved the way for new political entities and realignments. ​In January 2025, the interim government officially banned parties associated with the former National Progressive Front, effectively dissolving the Ba'ath Party and its affiliates. This move aimed to dismantle the political structures of the previous regime and open the space for new political formations.

Currenty, the key political parties/movements include:

• Hay'at Tahrir al-Sham (HTS): formerly an Islamist militant group, HTS helped overthrow the Assad regime. Its leader, Ahmad al-Sharaa, became interim president in January 2025. The group now presents itself as a political movement promoting pluralism and minority rights.
• Syrian Salvation Government (SSG): created by HTS in opposition-held areas, the SSG has been incorporated into the national framework and now functions as the administrative branch of the interim government.
• Syrian National Coalition (SNC): once the main opposition in exile, the SNC aligned with the transitional authorities and began dissolving in early 2025, integrating its members into the new government.
• Syrian Democratic Forces (SDF): a Kurdish-led alliance controlling northern Syria. While not officially part of the interim government, talks are underway regarding their role. Their exclusion from constitutional talks has caused friction.
• Kurdish National Council (KNC): a coalition of Kurdish parties that left the SNC in February 2025. It now seeks to represent Kurdish interests independently in the transitional political process.

Type of State

Syria is officially a republic founded on the principles of parliamentary democracy. In practice, however, it has long been dominated by authoritarian rule. While recent political shifts in 2025 have opened the door to transitional governance and potential reforms, power remains heavily centralised, and democratic institutions are still weak.

Executive Power

The President of Syria is both the head of state and head of government, following the abolition of the Prime Minister’s position under the new interim constitution. The President holds extensive executive powers and serves as commander-in-chief of the armed forces.

Under the interim framework introduced in 2024, the presidency is centralised and the President has the authority to appoint and dismiss ministers, propose laws, and appoint civilian and military personnel who are accountable solely to him. The President also exercises significant influence over the legislative branch, including the power to appoint one-third of the members of the People's Assembly.

The position is no longer filled by popular referendum for a fixed seven-year term, as was the case under the previous constitution. Instead, the new charter outlines a transitional period of five years, during which electoral and constitutional reforms may be introduced.

Legislative Power

Syria's legislative authority is vested in a unicameral parliament known as the People's Assembly (Majlis al-Shaab). It comprises 250 members elected by popular vote to serve four-year terms. The Assembly meets in three regular sessions each year and may be convened for special sessions by either its president or the President of the Republic.

Historically, the People's Assembly served primarily as an endorsement body for the legislative agenda of the Arab Socialist Ba'ath Party, particularly before the 2012 constitutional changes that formally introduced political pluralism.

Although Syria was under a state of emergency from 1963 to 2011—granting the President broad powers—this state was officially lifted in April 2011. However, subsequent legal and constitutional reforms have maintained strong executive control, particularly through the expansive powers still held by the presidency.

Indicator of Freedom of the Press

World Rank:

173/180

Source: World Press Freedom Index, Reporters Without Borders

Indicator of Political Freedom

Ranking:

Not Free

Political Freedom:

7/7

Civil Liberties:

7/7

Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House