Syria’s economy showing signs of progress: IMF

The International Monetary Fund (IMF) said on Monday it planned an “intensive programme of engagement” with Syria to help it rebuild its economy, but a statement issued at the end of an IMF staff visit to Damascus did not mention any discussions of financial assistance for the country.

Nearly a year after longtime leader Bashar Al Assad was ousted, Syria is pursuing a strategic realignment away from Iran and towards the US under its new leader, President Ahmed Al Sharaa, and has embarked on an effort to rebuild infrastructure destroyed by a 14-year civil war.

“Syria’s economy is showing signs of recovery and improving prospects, reflecting the improvement in consumer and investor sentiment under Syria’s new regime, Syria’s gradual re-integration with the regional and global economy as sanctions are being lifted, and the return of more than one million refugees,” IMF Syria Mission Chief Ron van Rooden said in a statement.

Van Rooden said discussions during the November 10-13 staff visit focused on the formulation of Syria’s 2026 government budget, which aims to increase spending on essential needs while ensuring ambitious but realistic revenue and financing assumptions.

The IMF said its staff will provide technical assistance to help improve revenue administration, finalize new tax legislation and develop a strategy to address Syria’s debts.

The Fund also will provide technical assistance on financial sector regulation, the rehabilitation of payment and banking systems and rebuilding the central bank’s capacity to effectively implement monetary policy for low and stable inflation and supervision of the banking system.

The IMF said reliable economic data remained scarce, but technical support is underway to improve Syria’s national accounts data, including on prices, balance of payments, government finance and financial statistics.

It said this would pave the way for the resumption of annual economic policy reviews with Syria that are required under IMF membership. The last such consultation was concluded in 2009.

The statement did not mention any plans for IMF financial assistance for Syria, but the IMF said the discussions included “detailed reform roadmaps” for Syria’s fiscal and financial sectors.

“The mission reaffirmed the IMF’s commitment to support the authorities in their efforts to rehabilitate Syria’s economy and key economic institutions,” van Rooden added.

Reuters