Economy (1)
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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 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 DEMOGRAPHY Age Distribution (2012 est.) NATURAL RESOURCES Visa Requirements: All non-Syrian and non-Arabic passport holders require visas. These can be obtained from the consulates abroad.
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