Syria’s economic reconstruction efforts are hindered by deep structural issues despite some easing of sanctions. The ongoing crisis has resulted in high poverty rates, significant currency devaluation, and critical resource shortages. An international conference in Paris aims to address these economic challenges, but experts stress that more than sanctions relief is necessary for recovery.
Syria is currently facing significant economic challenges that hinder its reconstruction, despite some easing of international sanctions. As the country continues to grapple with structural economic issues, an international conference focusing on economic support is set to take place in Paris, gathering foreign ministers from various nations. The aftermath of the al-Assad government’s downfall has not alleviated poverty, with almost 90 percent of the population reportedly living below the poverty line, according to UN estimates.
After nearly 14 years of conflict, Syria’s economy has contracted by 84 percent, contributing to a staggering 270-fold devaluation of the Syrian pound against the U.S. dollar from 2011 to 2023. The World Bank highlighted that inflation has spiraled, with consumer prices rising by 115 percent in 2023. Nonetheless, after the recent political changes, food prices have substantially decreased, exemplified by potatoes, which fell from 9,000 to 4,000 Syrian pounds per kilogram, although purchasing power remains weak due to delayed salaries and low savings.
Syria’s infrastructure, particularly its electricity system, has been severely affected by the ongoing conflict, with current generation levels at only 1,500 megawatts, compared to the 7,000 megawatts required for basic needs. The reliance on oil for thermal power generation has become problematic, with oil production now meeting only 5 percent of domestic demands, down from 25 percent in 2010, primarily due to loss of control over oil fields.
Additionally, Western sanctions, particularly the Caesar Syria Civilian Protection Act, have imposed significant restrictions on foreign businesses, blocking essential goods like wheat from entering the country and crippling oil exports. With oil production in government-controlled zones falling below 9,000 barrels daily, Syria increasingly depends on Iranian imports.
Syrian officials warn that continued sanctions could lead to catastrophic outcomes for the economy. Discussions about economic recovery have turned toward potential sanctions relief following the al-Assad government’s collapse, with cautious steps taken to lift restrictions on critical sectors. However, local economists argue that removing sanctions alone will not suffice to rebuild the economy, emphasizing the need for comprehensive reforms, investment, and political stability to facilitate recovery.
In summary, Syria faces a dire economic situation marked by high poverty levels, severe currency devaluation, and resource shortages that have worsened under ongoing sanctions. While some progress has been made in easing restrictions, experts emphasize that fundamental reforms and international support are essential for the country’s economic revival. The future remains uncertain, hinging on effective policy changes and stability in governance.
Original Source: english.news.cn
