Syria Overview

The Syrian economy is slowly moving from a nationalised and interventionist economy to an economy that leaves private initiatives play a greater part. The economy's liberalisation only applies to banking sector, for the moment. The government has been trying to adopt a reviving budget policy to go with the moderate economic growth since 2000. The IFM estimated Syria's GDP growth rate at 3.6% in 2004, 3.5% in 2005. The IFM forecasts a 4% in 2006. The strong regional political instability, especially the country's proximity to Iraq and Syria's contested role in Lebanon, is limiting foreign investment. Syrians left Lebanon in April 2005.

Syria's economy strongly relies on agriculture sector's results, which account for about 30% of the GDP and employs one third of the active population. Cotton is the second most imported product in the country. The oil sector also holds an important role. Oil products sales add up to 60% of the country's exports. Gas production is developing, especially with the gas pipeline plan that links Banias' port to Jordan, or with Deir Ez Zor gas plan (held byTotal and Conoco). Syrian Diaspora's capitals repatriation is another significant source of income in the country. The manufacturing industry is little productive and lightly competitive.

Syria signifies its will to open up to international trade. Free-trade agreements have been implemented with Lebanon, Jordan, Morocco and Irak. Syria signed an association agreement with the European Union in October 2004. Its top three export countries are Italy, France and Irak. The country's top three import partners are Ukraine, China and Turkey. The country mainly imports capital goods, consumer goods and vehicles; it mainly exports oil, textile products, cotton and food products.