Economic overview Syria, in 36 editions.

Syria's rigidly structured Bathist economy is turning turned out roughly the same amount of slightly more goods in 1989 as 1990 than in 1983, when the population was 20% smaller. Economic difficulties are attributable, in part, to severe drought in several recent years, costly but unsuccessful attempts to match Israel's military strength, a falloff in Arab aid, and insufficient foreign exchange earnings to buy needed inputs for industry and agriculture. Socialist policy, embodied in a thicket of bureaucratic regulations, in many instances has driven away or pushed underground the mercantile and entrepreneurial spirit for which Syrian businessmen have long been famous. Two bright spots: a sizable number of villagers have benefited from land redistribution, electrification, and other rural development programs; and a recent find of light crude oil has enabled Syria to cut back its substantial imports of light crude. oil imports. A long-term concern is the additional drain of upstream Euphrates water by Turkey when its vast dam and irrigation projects are completed toward the end of the 1990s. Output in 1990 rebounded from the very bad year of 1989, as agricultural production and oil revenues increased substantially.

Syria's state-dominated Ba`thist Ba'thist economy has benefited from the Gulf war,
increased oil production, good weather, and economic deregulation. Economic
growth averaged nearly 12% annually in 1990-91, buoyed by increased oil
production and improved agricultural performance. The Gulf war of early 1991
provided Syria an aid windfall of several nearly $5 billion dollars from Arab,
European, and Japanese donors. These inflows more than offset Damascus's
war-related costs and will help Syria cover some of its debt arrears,
restore suspended credit lines, and initiate selected military and civilian
purchases. In 1992 the government spurred economic development by loosening
controls on domestic and foreign investment while maintaining strict
political controls. For the long run, Syria's economy is still saddled with
a large
number of poorly performing public sector firms; investment levels remain
low; firms and industrial and
agricultural productivity is poor. A major long-term
concern is the
additional drain of upstream Euphrates water by Turkey when
its vast dam and
irrigation projects are completed by mid-decade.

Syria's state-dominated Ba'thist economy has benefited from the Gulf war,
war of early 1991, increased oil production, good weather, and
economic deregulation. Economic
growth averaged nearly 12% annually roughly 10% in 1990-91, buoyed by increased oil
production and improved agricultural performance. 1990-93. The Gulf war of early 1991
provided Syria an aid windfall of nearly $5
billion dollars from Arab,
European, and Japanese donors. These
inflows more than offset Damascus's
war-related costs and will help
Syria cover some of its debt arrears,
restore suspended credit lines,
and initiate selected military and civilian
purchases. In 1992 the
government spurred economic development by loosening
controls on
domestic and foreign investment while maintaining strict
political
controls. For the long run, Syria's economy is still saddled with
a
large number of poorly performing public sector firms firms, and industrial and
agricultural productivity is poor. A remains to be improved. Another major long-term concern
is the
additional drain of upstream Euphrates water by Turkey when its
vast dam and
irrigation projects are completed by mid-decade.

In 1990-93 Syria's state-dominated Ba'thist economy has
benefited from the Gulf
war of early 1991, war, increased oil production, good weather, and
and economic deregulation. Economic growth averaged roughly 10% in
1990-93. 10%. The
Gulf war provided Syria an aid windfall of nearly $5
billion dollars
from Arab, European, and Japanese donors. These
inflows more than offset Damascus's war-related costs and will help
Syria cover some However, the benefits of its debt arrears, restore suspended credit lines, the
and initiate selected military 1990-93 boom were not evenly distributed and civilian purchases. In 1992 the
government spurred economic development by loosening controls on gap between rich and
domestic poor is widening. A nationwide financial scandal and foreign investment while maintaining strict political increasing
controls. inflation were accompanied by a decline in GDP growth to 4% in 1994.
For the long run, Syria's economy is still saddled with a
large number
of poorly performing public sector firms, and industrial
productivity
remains to be improved. Another major long-term concern
Oil production is likely to fall off
dramatically by the additional drain end of upstream Euphrates water by Turkey the decade. Unemployment will become a
problem for the government when its the more than 60% of the population
vast dam and irrigation projects are completed by mid-decade. under the age of 20 enter the labor force.

In 1990-93 During 1990-92 Syria's state-dominated Ba'thist economy
benefited from the Gulf war, increased oil production, good weather,
and economic deregulation. reform. Economic growth averaged roughly 10%. The
Gulf war provided Syria an
led to a Syrian aid windfall of nearly $5 billion dollars
from Arab,
European, and Japanese donors. However, Most positive economic trends ended
in 1993 due to the benefits dissipation of the Gulf war boom, a domestic
1990-93 boom were not evenly distributed financial crisis, and economic policy missteps. Economic growth has
dropped below 5%, income inequality is increasing, the gap between rich and government
poor budget deficit is widening. A nationwide financial scandal growing, and increasing
inflation were accompanied by a decline in GDP growth to 4% in 1994. international accounts are weakening.
For the long run, Syria's economy is still saddled with a large number
of
poorly performing public sector firms, firms and low industrial productivity
remains to be improved. productivity. Oil production is likely to fall off
dramatically ebb by the end of the
decade. Unemployment will become a
problem for the government when likely rise as the more than 60% of the population
population under the age of 20 enter moves into the labor force. The economic
benefits of any peace treaty with Israel will depend in large part
on the pace of economic reform.

Sheltered from the pressures of the international
marketplace for almost three decades, Syria's predominantly statist
economy is on a weak shaky
footing because of Damascus's failure to
implement extensive economic reform. After an economic rebound in the
early 1990s in the wake of the Persian Gulf war, economic growth has
slowed as the traditionally volatile economy has once again slumped.
Current account and budget deficits and inflation are increasing. reform. The
dominant agricultural sector remains underdeveloped, with
roughly 80%
of agricultural land still dependent on rain-fed sources. Although
Although Syria has sufficient water supplies in the aggregate at
normal levels
of precipitation, the great distance between major water
supplies and
population centers poses serious distribution problems, and the water problems.
The water problem is exacerbated by rapid population growth, industrial
industrial expansion, and increased water pollution. Unemployment remains a
nagging problem because about 60% of the population is under the age
of 20, ensuring a steady flow of job seekers into the already tight
labor market. Private
investment is critical to the modernization of
the agricultural,
energy, and export sectors, particularly because
Damascus is saddled with a heavy foreign debt. sectors. Oil production is
leveling off, and the
efforts of the nonoil sector to penetrate
international markets have
fallen short. Syria's inadequate
infrastructure, outmoded
technological base, and weak educational
system make it vulnerable to
future shocks and hamper competition with neighbors such as Jordan and Israel.
The dominant public sector continues to be plagued by labor,
financial, and management problems, and much of the private sector is
hobbled by a shortage of capital. The economic benefits of any peace
treaty with Israel will depend in large part on the pace of economic
reform. Israel.

Syria's predominantly statist economy is on a shaky
shaky footing because of Damascus's failure to implement extensive economic
economic reform. The dominant agricultural sector remains
underdeveloped, with
roughly 80% of agricultural land still
dependent on rain-fed sources.
Although Syria has sufficient water
supplies in the aggregate at
normal levels of precipitation, the
great distance between major water
supplies and population centers
poses serious distribution problems.
The water problem is
exacerbated by rapid population growth,
industrial expansion, and
increased water pollution. Private
investment is critical to the
modernization of the agricultural,
energy, and export sectors. Oil
production is leveling off, and the
efforts of the nonoil sector to
penetrate international markets have
fallen short. Syria's
inadequate infrastructure, outmoded
technological base, and weak
educational system make it vulnerable to
future shocks and hamper
competition with neighbors such as Jordan and
Israel.

Syria's predominantly statist economy is on a
shaky footing because of Damascus's failure to implement extensive
economic reform. The dominant agricultural sector remains
underdeveloped, with roughly 80% of agricultural land still
dependent on rain-fed sources. Although Syria has sufficient water
supplies in the aggregate at normal levels of precipitation, the
great distance between major water supplies and population centers
poses serious distribution problems. The water problem is
exacerbated by rapid population growth, industrial expansion, and
increased water pollution. Private investment is critical to the
modernization of the agricultural, energy, and export sectors. Oil
production is leveling off, and the efforts of the nonoil sector to
penetrate international markets have fallen short. Syria's
inadequate infrastructure, outmoded technological base, and weak
educational system make it vulnerable to future shocks and hamper
competition with neighbors such as Jordan and Israel.

Syria's predominantly statist economy is on a shaky footing because of Damascus's failure to implement extensive economic reform. The dominant agricultural sector remains underdeveloped, with roughly 80% of agricultural land still dependent on rain-fed sources. Although Syria has sufficient water supplies in the aggregate at normal levels of precipitation, the great distance between major water supplies and population centers poses serious distribution problems. The water problem is exacerbated by rapid population growth, industrial expansion, and increased water pollution. Private investment is critical to the modernization of the agricultural, energy, and export sectors. Oil production is leveling off, and the efforts of the nonoil sector to penetrate international markets have fallen short. Syria's inadequate infrastructure, outmoded technological base, and weak educational system make it vulnerable to future shocks and hamper competition with neighbors such as Jordan and Israel. The government recognizes the need to open the economy to additional domestic and foreign investment.

Syria's predominantly statist economy has been growing slower growing, on average, more slowly than its 2.5% 2.4% annual population growth rate, causing a persistent decline in per capita GDP. President Bashar AL-ASAD has made little progress on the economic front after one year in office, but does appear willing to permit a gradual strengthening of the private sector. His most obvious accomplishment to this end was the recent passage of Recent legislation allowing allows private banks to operate in Syria, although a private banking sector will take years and further government cooperation to develop. ASAD's recent cabinet reshuffle may improve his chances of implementing further growth-oriented policies, although external External factors such as the international war on terrorism, the Israeli-Palestinian conflict, and downturn in oil prices could weaken the foreign investment war between the US-led coalition and government revenues Syria needs to flourish. Iraq probably will drive real annual GDP growth levels back below their 3.5% spike in 2002. A long-run economic constraint is the pressure on water supplies caused by rapid population growth, industrial expansion, and increased water pollution.

Syria's predominantly statist economy lately has been growing, on average, growing more slowly than its 2.4% annual population growth rate, causing a persistent decline in per capita GDP. rate. Recent legislation allows private banks to operate in Syria, although a private banking sector will take years and further government cooperation to develop. External factors such as the international war on terrorism, the Israeli-Palestinian conflict, and Factors, including the war between the US-led coalition and Iraq Iraq, probably will drive drove real annual GDP growth levels back below their 1% in 2003 following growth of 3.5% spike in 2001 and 4.5% in 2002. A long-run economic constraint is the pressure on water supplies caused by rapid population growth, industrial expansion, and increased water pollution.

Real GDP growth rose to 2.3 percent in 2004, a slight increase from 2003 when The Syrian Government estimates the predominantly statist economy suffered from disruptions caused grew by the war 4.5 percent in Iraq real terms in 2005, led by the petroleum and other agricultural sectors, which together account for about half of GDP. Economic performance and the exchange rate on the informal market were hit by international political developments following the assassination in February of former Lebanese Prime Minister Rafiq al-HARIRI and the region. Annual real GDP growth has averaged 2.3 percent for specter of international sanctions. Higher crude oil prices countered declining oil production and exports and helped to narrow the last seven years. budget deficit and widen the current account surplus. The Government of Syria has implemented modest economic reforms in the last few years, including cutting interest rates, opening private banks, consolidating some of the multiple exchange rates, and raising prices on some subsidized foodstuffs. Nevertheless, the economy remains highly controlled by the government. Long run Long-run economic constraints include declining oil production and exports and exports, increasing pressure on water supplies caused by rapid population growth, industrial expansion, and increased water pollution.

The Syrian Government estimates the economy grew by 4.5 percent an estimated 2.9% in real terms in 2005, 2006 led by the petroleum and agricultural sectors, which together account for about half one-half of GDP. Economic performance and the exchange rate on the informal market were hit by international political developments following the assassination in February of former Lebanese Prime Minister Rafiq al-HARIRI and the specter of international sanctions. Higher crude oil prices countered declining oil production and exports and helped led to narrow higher budgetary and export receipts. Total foreign assets of the budget deficit Central Bank and widen domestic banking system rose to about $20 billion in 2006, and the current account surplus. government strengthened the private sector foreign exchange rate by about 7% from the start of the year. The Government of Syria has implemented modest economic reforms in the last past few years, including cutting lending interest rates, opening private banks, consolidating some of the multiple exchange rates, and raising prices on some subsidized foodstuffs. items, most notably, gasoline and cement. Nevertheless, the economy remains highly controlled by the government. Long-run economic constraints include declining oil production and exports, weak investment, high unemployment, and increasing pressure on water supplies caused by heavy use in agriculture, rapid population growth, industrial expansion, and water pollution.

The Syrian economy grew by an estimated 2.9% 3.3% in real terms in 2006 2007 led by the petroleum and agricultural sectors, which together account for about one-half of GDP. Higher crude oil prices countered declining oil production and exports and led to higher budgetary and export receipts. Total foreign assets of the Central Bank and domestic banking system rose to about $20 billion in 2006, and the government strengthened the private sector foreign exchange rate by about 7% from the start of the year. The Government of Syria Damascus has implemented modest economic reforms in the past few years, including cutting lending interest rates, opening private banks, consolidating some all of the multiple exchange rates, and raising prices on some subsidized items, most notably, notably gasoline and cement. cement, and establishing the Damascus Stock Exchange - which is set to begin operations in 2009. In October 2007, for example, Damascus raised the price of subsidized gasoline by 20%, and may institute a rationing system in 2008. In addition, President ASAD signed legislative decrees to encourage corporate ownership reform, and to allow the Central Bank to issue Treasury bills and bonds for government debt. Nevertheless, the economy remains highly controlled by the government. Long-run economic constraints include declining oil production and exports, weak investment, production, high unemployment, unemployment and inflation, rising budget deficits, and increasing pressure on water supplies caused by heavy use in agriculture, rapid population growth, industrial expansion, and water pollution.

The Syrian economy grew by an estimated 3.3% 2.4% in real terms in 2007 2008 led by the petroleum and agricultural sectors, which together account for about one-half of GDP. Higher crude oil prices countered declining oil production and led to higher budgetary and export receipts. Damascus has implemented modest economic reforms in the past few years, including cutting lending interest rates, opening private banks, consolidating all of the multiple exchange rates, raising prices on some subsidized items, most notably gasoline and cement, and establishing the Damascus Stock Exchange - which is set to begin operations in 2009. In October 2007, for example, Damascus raised the price of subsidized gasoline by 20%, and may institute then instituted a rationing system in 2008. In addition, President ASAD signed legislative decrees to encourage corporate ownership reform, and to allow the Central Bank to issue Treasury bills and bonds for government debt. Nevertheless, the economy remains highly controlled by the government. Long-run economic constraints include declining oil production, high unemployment and inflation, rising budget deficits, and increasing pressure on water supplies caused by heavy use in agriculture, rapid population growth, industrial expansion, and water pollution.

The Syrian economy grew by an estimated 2.4% in real terms economic growth slowed to 1.8% in 2008 led by 2009 as the petroleum and agricultural sectors, which together account for about one-half of GDP. Higher crude global economic crisis affected oil prices countered declining oil production and led to higher budgetary and the economies of Syria's key export receipts. partners and sources of investment. Damascus has implemented modest economic reforms in the past few years, including cutting lending interest rates, opening private banks, consolidating all of the multiple exchange rates, raising prices on some subsidized items, most notably gasoline and cement, and establishing the Damascus Stock Exchange - which is set to begin began operations in 2009. In October 2007, for example, Damascus raised the price of subsidized gasoline by 20%, then instituted a rationing system in 2008. In addition, President ASAD signed legislative decrees to encourage corporate ownership reform, and to allow the Central Bank to issue Treasury bills and bonds for government debt. Nevertheless, the economy remains highly controlled by the government. Long-run economic constraints include declining oil production, high unemployment and inflation, unemployment, rising budget deficits, and increasing pressure on water supplies caused by heavy use in agriculture, rapid population growth, industrial expansion, and water pollution.

Syrian economic growth slowed to 1.8% remained in 2009 as the 4-5% range in 2008-10 even though the global economic crisis affected oil prices and the economies of Syria's key export partners and sources of investment. Damascus has implemented modest economic reforms in the past few years, including cutting lending interest rates, opening private banks, consolidating all of the multiple exchange rates, raising prices on some subsidized items, most notably gasoline and cement, and establishing the Damascus Stock Exchange - which began operations in 2009. In addition, President ASAD signed legislative decrees to encourage corporate ownership reform, and to allow the Central Bank to issue Treasury bills and bonds for government debt. Nevertheless, the economy remains highly controlled by the government. Long-run economic constraints include declining oil production, high unemployment, rising budget deficits, and increasing pressure on water supplies caused by heavy use in agriculture, rapid population growth, industrial expansion, and water pollution.

Syrian Despite modest economic growth remained in and reform prior to the 4-5% range in 2008-10 even though outbreak of unrest, Syria's economy continues to suffer the global economic crisis affected oil prices effects of the ongoing conflict that began in 2011. The economy further contracted in 2012 because of international sanctions and reduced domestic consumption and production. The government has struggled to address the economies effects of Syria's key export partners economic decline, including dwindling foreign exchange reserves, rising budget and sources trade deficits, and the decreasing value of investment. the Syrian pound. Prior to the unrest, Damascus has implemented modest began liberalizing economic reforms in the past few years, policies, including cutting lending interest rates, opening private banks, consolidating all of the multiple exchange rates, raising prices on some subsidized items, most notably gasoline and cement, and establishing the Damascus Stock Exchange - which began operations in 2009. In addition, President ASAD signed legislative decrees to encourage corporate ownership reform, and to allow the Central Bank to issue Treasury bills and bonds for government debt. Nevertheless, the Exchange. The economy remains highly controlled regulated by the government. Long-run economic constraints include foreign trade barriers, declining oil production, high unemployment, rising budget deficits, and increasing pressure on water supplies caused by heavy use in agriculture, rapid population growth, industrial expansion, and water pollution.

Despite modest economic growth and reform prior to the outbreak of unrest, Syria's economy continues to suffer the effects of the ongoing conflict that began in 2011. The economy further contracted in 2012 because of international sanctions and reduced domestic consumption and production. production, and inflation has risen sharply. The government has struggled to address the effects of economic decline, including which include dwindling foreign exchange reserves, rising budget and trade deficits, and the decreasing value of the Syrian pound. Prior to the unrest, Damascus began liberalizing economic policies, including cutting lending interest rates, opening private banks, consolidating multiple exchange rates, raising prices on some subsidized items, and establishing the Damascus Stock Exchange. The economy remains highly regulated by the government. Long-run economic constraints include foreign trade barriers, declining oil production, high unemployment, rising budget deficits, and increasing pressure on water supplies caused by heavy use in agriculture, rapid population growth, industrial expansion, and water pollution.

Despite modest economic growth and reform prior to the outbreak of unrest, Syria's economy continues to suffer the effects of deteriorate amid the ongoing conflict that began in 2011. The economy further contracted in 2012 2013 because of international sanctions and sanctions, widespread infrastructure damage, reduced domestic consumption and production, and inflation has risen sharply. sharply rising inflation. The government has struggled to address the effects of economic decline, which include dwindling foreign exchange reserves, rising budget and trade deficits, and the decreasing value of the Syrian pound. The ongoing conflict and economic decline have created a humanitarian crisis, prompting widespread need for international aid. Prior to the unrest, Damascus began liberalizing economic policies, including cutting lending interest rates, opening private banks, consolidating multiple exchange rates, raising prices on some subsidized items, and establishing the Damascus Stock Exchange. The economy remains highly regulated by the government. Long-run economic constraints include foreign trade barriers, declining oil production, high unemployment, rising budget deficits, and increasing pressure on water supplies caused by heavy use in agriculture, rapid population growth, industrial expansion, and water pollution.

Despite modest economic growth and reform prior to the outbreak of unrest, Syria's economy continues to deteriorate amid the ongoing conflict that began in 2011. The economy further contracted in 2013 2014 because of international sanctions, widespread infrastructure damage, reduced diminished domestic consumption and production, reduced subsidies, and sharply rising high inflation. The government has struggled to address the effects of economic decline, which include dwindling foreign exchange reserves, rising budget and trade deficits, and the decreasing value of the Syrian pound. The pound and household purchasing power. During 2014, the ongoing conflict and continued unrest and economic decline have created a worsened the humanitarian crisis, prompting widespread crisis and elicited a greater need for international aid. assistance, as the number of people in need inside Syria increased from 9.3 million to 12.2 million, and the number of Syrian refugees increased from 2.2 million to more than 3.3 million. Prior to the unrest, turmoil, Damascus began liberalizing economic policies, including cutting lending interest rates, opening private banks, consolidating multiple exchange rates, raising prices on some subsidized items, and establishing the Damascus Stock Exchange. The Exchange, but the economy remains highly regulated by the government. regulated. Long-run economic constraints include foreign trade barriers, declining oil production, high unemployment, rising budget deficits, increasing pressure on water supplies caused by heavy use in agriculture, rapid population growth, industrial expansion, and water pollution. pollution, and widespread infrastructure damage.

Syria's economy continues to deteriorate amid the ongoing conflict that began in 2011. 2011, declining by 62% from 2010 to 2014. The economy further contracted in 2014 because government has struggled to address the effects of international sanctions, widespread infrastructure damage, diminished domestic consumption and production, reduced subsidies, and high inflation. The government has struggled to address the effects of economic decline, inflation, which include have caused dwindling foreign exchange reserves, rising budget and trade deficits, and the a decreasing value of the Syrian pound pound, and falling household purchasing power.
During 2014, the ongoing conflict and continued unrest and economic decline worsened the humanitarian crisis and elicited a greater need for international assistance, as the number of people in need inside Syria increased from 9.3 million to 12.2 million, and the number of Syrian refugees increased from 2.2 million to more than 3.3 million.
Prior to the turmoil, Damascus began had begun liberalizing economic policies, including cutting lending interest rates, opening private banks, consolidating multiple exchange rates, raising prices on some subsidized items, and establishing the Damascus Stock Exchange, but the economy remains highly regulated. Long-run economic constraints include foreign trade barriers, declining oil production, high unemployment, rising budget deficits, increasing pressure on water supplies caused by heavy use in agriculture, rapid population growth, industrial expansion, water pollution, and widespread infrastructure damage.

Syria's economy continues to deteriorate amid the ongoing conflict that began in 2011, declining by 62% more than 70% from 2010 to 2014. 2016. The government has struggled to address the effects of international sanctions, widespread infrastructure damage, diminished domestic consumption and production, reduced subsidies, and high inflation, which have caused dwindling foreign exchange reserves, rising budget and trade deficits, a decreasing value of the Syrian pound, and falling household purchasing power.
During 2014, the ongoing conflict and continued unrest and economic decline worsened the humanitarian crisis and elicited a greater need for international assistance, as the number of people in need inside Syria increased from 9.3 million to 12.2 million, and the number of Syrian refugees increased from 2.2 million to more than 3.3 million.
Prior to the turmoil, Damascus had begun liberalizing economic policies, including cutting lending interest rates, opening private banks, consolidating multiple exchange rates, raising prices on some subsidized items, and establishing the Damascus Stock Exchange, but the economy remains highly regulated. Long-run economic constraints include foreign trade barriers, declining oil production, high unemployment, rising budget deficits, increasing pressure on water supplies caused by heavy use in agriculture, rapid population growth, industrial expansion, water pollution, and widespread infrastructure damage.

Syria's economy continues to deteriorate has deeply deteriorated amid the ongoing conflict that began in 2011, declining by more than 70% from 2010 to 2016. 2017. The government has struggled to fully address the effects of international sanctions, widespread infrastructure damage, diminished domestic consumption and production, reduced subsidies, and high inflation, which have caused dwindling foreign exchange reserves, rising budget and trade deficits, a decreasing value of the Syrian pound, and falling household purchasing power.
In 2017, some economic indicators began to stabilize, including the exchange rate and inflation, but economic activity remains depressed and GDP almost certainly fell. During 2014, 2017, the ongoing conflict and continued unrest and economic decline worsened the humanitarian crisis and elicited a greater need for crisis, necessitating high levels of international assistance, as the number of more than 13 million people remain in need inside Syria increased from 9.3 million to 12.2 million, Syria, and the number of registered Syrian refugees increased from 2.2 4.8 million in 2016 to more than 3.3 5.4 million.
Prior to the turmoil, Damascus had begun liberalizing economic policies, including cutting lending interest rates, opening private banks, consolidating multiple exchange rates, raising prices on some subsidized items, and establishing the Damascus Stock Exchange, but the economy remains highly regulated. Long-run economic constraints include foreign trade barriers, declining oil production, high unemployment, rising budget deficits, increasing pressure on water supplies caused by heavy use in agriculture, rapid population growth, industrial expansion, contaction, water pollution, and widespread infrastructure damage.

Syria's economy has deeply deteriorated amid the ongoing conflict that began in 2011, declining by more than 70% from 2010 to 2017. The government has struggled to fully address the effects of international sanctions, widespread infrastructure damage, diminished domestic consumption and production, reduced subsidies, and high inflation, which have caused dwindling foreign exchange reserves, rising budget and trade deficits, a decreasing value of the Syrian pound, and falling household purchasing power. In 2017, some economic indicators began to stabilize, including the exchange rate and inflation, but economic activity remains depressed and GDP almost certainly fell.
During 2017, the ongoing conflict and continued unrest and economic decline worsened the humanitarian crisis, necessitating high levels of international assistance, as more than 13 million people remain in need inside Syria, and the number of registered Syrian refugees increased from 4.8 million in 2016 to more than 5.4 million.
Prior to the turmoil, Damascus had begun liberalizing economic policies, including cutting lending interest rates, opening private banks, consolidating multiple exchange rates, raising prices on some subsidized items, and establishing the Damascus Stock Exchange, but the economy remains highly regulated. Long-run economic constraints include foreign trade barriers, declining oil production, high unemployment, rising budget deficits, increasing pressure on water supplies caused by heavy use in agriculture, industrial contaction, water pollution, and widespread infrastructure damage.