A new market assessment by the Norwegian Refugee Council (NRC) has revealed that local markets in Syria are not ready for a potential influx of returning displaced persons. Despite some positive changes in trade policies, significant challenges remain, including a liquidity crisis and decreased purchasing power for families. The NRC calls for increased international support and investment to facilitate recovery efforts.
According to a recent assessment by the Norwegian Refugee Council (NRC), local markets in Syria are inadequately prepared to accommodate an influx of workers, particularly if a large number of displaced people return home. This assessment examined large and medium-sized firms in areas including Rural Damascus, Daraa, Aleppo, Homs, and Hama, revealing a decline in production and commercial activity following the previous government’s collapse, despite new trade policies aimed at enhancing market conditions.
Despite some recent price improvements, Federico Jachetti, NRC’s Syria Country Office Director, reports that Syrian markets face a liquidity crisis, with purchasing power significantly diminished. “Every day is a battle to survive,” he emphasizes, highlighting the urgent need for investments that can stimulate small business growth and create job opportunities, particularly in repairing essential civilian infrastructure.
On the cusp of Ramadan, NRC surveyed individuals from diverse income brackets, who reported that their monthly expenses for food, rent, and utilities total around 3 million Syrian pounds, or approximately 300 US dollars. This situation is aggravated by ongoing exchange rate volatility and market uncertainties. Mohammed, an electrician who benefited from NRC’s training and support to open his shop in Aleppo, lamented the pressures faced by consumers and businesses alike while noting the reliance on remittances from abroad.
Displaced individuals, including those residing in camps, have reported severe challenges due to reductions in aid, particularly monthly food distributions. While prices for many food staples have decreased recently, essential items like bread have increased in cost due to subsidy cuts, now costing eight times more than last year, according to UN sources.
Mona, a 50-year-old resident of an Idlib camp, expressed desperation in her reliance on external aid: “We wouldn’t have stayed here if we had a home to go back to.” Ahead of the ninth Brussels Conference on March 17, NRC is advocating for increased international support for displaced Syrians and those returning home, stressing the necessity of combining immediate relief with long-term sustainability measures for the affected population.
In conclusion, the NRC’s market assessment reveals that Syrian local markets are struggling to meet the needs of returning populations, compounded by financial instability and rising living costs. The liquidity crisis and reduced purchasing power highlight the urgent necessity for investments in small business initiatives and essential infrastructure repair. Humanitarian aid remains critical, particularly as families face high costs for basic needs and navigate the challenges of uncertain market conditions.
Original Source: www.nrc.no
