Facts about the Syrian economy for 53 years

But what do we know about the Syrian economy under the rule of the Assad family?

From 1971 until today, he moved Syrian economy From a state-based socialist model to a semi-open economy, before entering a phase of collapse due to war.

The Syrian economy during the era of Hafez al-Assad… transformed from socialism to a command economy

The Syrian economy underwent major transformations during the reign of Hafez al-Assad, which lasted from 1971 to 2000. This period was characterized by a gradual transition from the socialist economic policies inherited from previous regimes to a more market-oriented economic model. while retaining the significant role of the state.

At the beginning of his rule, Hafez al-Assad inherited socialist economic policies, which included nationalization, agricultural reform, and government control of most economic sectors. Over time, Assad began to adopt a more flexible policy, encouraging private investment and reducing the role of the state in the economy.

This period is characterized by the passing of laws that encourage investments, such as the Investment Law no. 10 from 1991.

Despite previous transformations, the public sector continued to play a major role in the Syrian economy, particularly in vital sectors such as energy and communications.

Economic growth

It was modified Economic growth Fluctuating greatly during the 1970s and 1980s, GDP grew in the 1970s at a rate of 5 to 7 percent per year, but slowed in the 1980s to about 1 to 2 percent per year.

During the 1990s, especially in the last decade of Hafez al-Assad’s rule, Syria’s gross domestic product began to experience relative stability, reaching around $15–17 billion by the end of the decade.

The Syrian economy during the Bashar al-Assad era

During the rule of Bashar al-Assad, the Syrian economy has faced multiple developments since he took power in 2000. He began his rule with promises of economic reform and gradual openness, but soon faced internal and external challenges, culminating in the outbreak of Syrian crisis in 2011.

Here’s a look at the Syrian economy before and after the crisis during the Assad Jr. era:

Economic growth before 2011

During the first decade of Bashar al-Assad’s rule, GDP grew at an annual rate of 4 to 5 percent, driven by limited economic reforms and increased Oil prices Global.

Gross domestic product reached about $60 billion by 2010, according to the World Bank, compared to $18 billion in the Syrian economy in 2000. The oil and agricultural sectors formed the mainstay of the economy, and tourism and services began to recover in the first decade of his reign.

In 2011, the Syrian economy peaked at $67.5 billion.

During the war (2011-2023):

GDP has fallen by more than 86 percent because of the war, falling to about $8.9 billion by 2021, according to the World Bank.

Exports and imports before 2011:

Exports were approximately $12 billion in 2010 and included crude oil, agricultural products (such as cotton and wheat), and the textile industry. Oil represented about 30-35% of total exports.

In 2010, Syria imported various products worth about 17 billion dollars.

During the war (2011-2023)… trade collapse

Exports have fallen to less than $1 billion a year due to sanctions and the destruction of infrastructure, while basic imports of food and fuel have risen, with increasing reliance on humanitarian aid and the cessation of the most productive activities.

Main economic sectors:

First, the oil:

Before 2011, oil production reached about 380,000 barrels per day in 2000, but gradually decreased to about 240,000 barrels per day in 2010 due to dwindling reserves.

Oil revenues accounted for approximately 20-25 percent of GDP and 50 percent of government revenues.

During the war, armed factions took control of most of the oil fields, causing production to drop to less than 25,000 barrels per day in 2018.

As the government regained control of some fields (with the support of Russia and Iran), production has risen slightly to about 40,000 barrels per day by 2023, according to reports from the International Energy Agency (IEA) and reports from the United Nations.

Second, agriculture:

Before the war, agriculture accounted for about 20-25 percent of GDP. Syria was self-sufficient in wheat and cotton exports.

During the war, the agricultural sector suffered major blows as a result of mass displacement, drought and lack of resources.

Third, tourism:

Before the war, tourism accounted for about 12 percent of gross domestic product in 2010, and Syria attracted about 8 million tourists a year with revenues of over $8 billion.

During the war, the tourism sector completely collapsed, with the exception of limited religious visits from Iraq and Iran.

Fourth, currency and inflation:

Before the war, the exchange rate of the Syrian pound was relatively stable, reaching around 46 pounds to the dollar in 2010.

During the war, the currency experienced a sharp collapse, reaching more than 22,000 lira against the dollar at dawn on Sunday, December 8, 2024.

How he arrived Inflation Record levels, with prices of basic commodities rising by more than 2,000 percent.

Fifth: Debts and penalties:

Before the war, the external debt was 6 billion dollars. During the war, debts rose dramatically due to the government’s reliance on external financing from Russia and Iran.

The United States and the European Union imposed harsh sanctions, notably the “Caesar” Act of 2020, which restricted Syria’s ability to conduct international transactions.

For his part, the Secretary General of the National Authority for Democratic Action in Syria, Mahmoud Marei, said in exclusive statements to the “Ektisad Sky News Arabia” website:

• After the events they witnessed Syria In recent days, there has been a significant deterioration of economic conditions in the country.
• The value of the Syrian pound has fallen in an unprecedented way (..).
• This deterioration was directly reflected in the prices of goods and services, as prices rose insanely.
• In addition, serious shortages of basic foodstuffs such as sugar, rice, meat, milk and cheese have been recorded in the markets.
• In light of this situation, the income of the workers is significantly reduced, as the salary of a civil servant does not exceed 30 dollars per month, which leads to the rise of the poverty rate to a frightening level.