World Bank Group: Syria's GDP expected to grow modestly by 1% in 2025 after 1.5% contraction in 2024; severe liquidity crisis due to banknote shortage and currency disruptions

World Bank Group: Syria's GDP expected to grow modestly by 1% in 2025 after 1.5% contraction in 2024; severe liquidity crisis due to banknote shortage and currency disruptions

Syria's economic outlook remains challenging, with the World Bank Group predicting a modest GDP growth of 1% in 2025 following a 1.5% contraction in 2024. The country is grappling with a severe liquidity crisis due to banknote shortages and currency disruptions, exacerbating the already fragile economic landscape.

The economic sanctions imposed on Syria have significantly impacted its trade and financial sectors, limiting access to capital and essential goods. According to the World Bank, the Syrian economy has experienced hyperinflation, with the annual inflation rate among the highest globally. The national currency, the Syrian pound (SYP), has depreciated sharply, trading at over 3,000 SYP to the US dollar, compared to 47 SYP before the 2011 uprising [1].

The ongoing civil war has devastated the country's infrastructure and displaced millions, leading to a significant decline in productivity and living standards. The World Bank estimates that about one-third of Syria's housing stock and half of its health and education facilities have been destroyed by the conflict, resulting in a cumulative total of $226 billion in GDP lost from 2011 to 2016 [2].

Despite these challenges, there are signs of potential economic recovery. In 2022, Syria joined the Chinese Belt and Road Initiative, which could help the country attract investments and stimulate economic growth. However, the impact of this initiative on Syria's economic recovery remains to be seen.

In conclusion, while there is some hope for modest economic growth in 2025, Syria continues to face significant hurdles, including a severe liquidity crisis and the lasting effects of the civil war. The country's economic future will depend on the successful implementation of reforms and the resolution of the ongoing conflict.

References:
[1] https://en.wikipedia.org/wiki/Economy_of_Syria
[2] https://www.worldbank.org/en/country/syria/overview