Syria

Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of economic information | Political outline

Economic indicators

GDP growth was 4.4% in 2006, and 3.9% in 2007. The IMF forecasts a growth rate of 3.7% in 2008.
The growth of the Syrian economy has depended mainly on the production of hydrocarbons. The country is moving progressively from a strongly State controlled economy to a freer market economy where privatization plays an important part. For the moment, the liberalization of the economy concerns especially the banking and insurance sectors. In spite of the regional political instability (the closeness of Iraq, the role of Syria in Lebanon and the tensions with Israel), inflationary tendencies (about 7% in 2007), and a high unemployment rate (about 10%), foreign investment is more and more considerable in the country.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	34.92	38.97	44.49	45.67e	47.84e
GDP (constant prices, annual % change)	4.4	3.9e	4.2	5.2e	5.0e
GDP per capita (USD)	1,844	2,008	2,238e	2,242	2,293
Inflation rate (%)	10.4	4.7	8.0	7.0e	6.0
Unemployment rate (% of the labor force)	-	-	9.0	-	-
Current Account (billions USD)	-1.03	-0.56	-1.21e	-1.32e	-1.47e
Current Account (in % of GDP)	-2.9	-1.4e	-2.7	-2.9	-3.1e

Source: IMF - World Economic Outlook Database; FMI - World Economic Outlook Database; CIA - The World Factbook

Note: (e) Estimated data

Main sectors of industry

Syria's economy is heavily dependent on agriculture. It contributes nearly 20% to GDP and employs one-third of the active population. The land under cultivation has increased by more than 50% since 1970, largely because of government incentives and more efficient use of irrigation methods. The principal crops include wheat, potatoes, sugar beet, and barley. Large numbers of poultry, cattle, and sheep are also raised. The oil and gas sector is very important to the economy and contributes 65% to the country’s exports. The main industrial sectors are: petroleum refining, textiles, food-processing, chemicals, and state of the art technology. Handicrafts such as articles of silk, leather, and glass are widely produced. However, the manufacturing sector is less productive and contributes more than 25% to GDP. The services sector is well established (mainly tourism) and contributes more than 50% to GDP.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Value added (annual % change)	6.0	-5.0	9.6
Value added (in % of GDP)	20.4	31.6	48.0
Employment by sector (in % of total employment)	27.0	25.6	47.3

Source: International Monetary Fund - IMF; World Bank - World Development Indicators - last available data.

Monetary indicators	2003	2004	2005	2006
Syrian Pound (SYP) - Average annual exchange rate for 1 USD	11.23	11.23	11.23	11.23

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 46.6/100
Position:: Controlled
World Rank:: 144 out of 157
Regional Rank:: 15 out of 17

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Foreign trade in figures

Syria is quite open to international trade. Free-trade agreements have been signed with Lebanon, Jordan, Morocco and Iraq, with Arab countries (GAFTA free trade agreement) and with Turkey (bilateral free trade agreement). Syria also started negotiations for an Association Agreement with the EU in October 2004. The share of foreign trade in the country’s GDP is nearly 70%. Its top three export partners are: Iraq, Lebanon and Germany. Syria mainly exports mineral fuels and oils, cotton, livestock, and cereals. The top three import partners are: Saudi Arabia, China and Egypt. The country mainly imports iron and steel, nuclear reactors and boilers, machinery, vehicles, mineral fuels and oils, plastics and chemicals.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	4,430	6,957	8,742	9,359	-
Exports of goods (millions USD)	5,762	7,220	8,602	10,245	-
Imports of services (millions USD)	1,806	2,235	2,359	2,520	0
Exports of services (millions USD)	1,331	2,613	2,910	2,924	-
Imports of goods and services (annual % change)	-4.1	45.8	26.5	-4.5	8.4
Exports of goods and services (annual % change)	-23.3	23.9	-1.5	-10.0	2.5
Imports of goods and services (in % of GDP)	28.6	37.8	39.5	35.6	35.8
Exports of goods and services (in % of GDP)	31.4	40.6	41.5	39.4	37.6
Trade Balance (millions USD)	1,332	263	-140	886	-
Trade Balance (including service) (millions USD)	857	642	411	1,290	-
Foreign trade (in % of GDP)	60.0	78.3	81.0	75.0	73.4

Source:World Bank - World Development Indicators

Main partner countries

Main customers (% of exports)	2007
Italy	23.7%
France	11.5%
Saudi Arabia	10.6%
Iraq	5.6%
Turkey	5.2%
Other partners	43.4%

Main suppliers (% of imports)	2007
Russia	9.8%
China	8.0%
Italy	6.9%
Ukraine	5.8%
Saudi Arabia	5.7%
Other partners	63.8%

Source: Comtrade

Main products

Main exports (% of exports)	2007
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	41.1%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	4.7%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	4.6%
Man-made filamentsMan-made filaments	4.2%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	3.6%
Other products	41.8%

Main imports (% of imports)	2007
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	32.7%
Iron and steelIron and steel	9.7%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	6.7%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	6.1%
Plastics and articles thereofPlastics and articles thereof	6.1%
Other products	38.7%

Source: Comtrade

To see more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of economic information

Ministries: Ministry of the Economy
Ministry of Finance
Statistical Office: Central Bureau of Statistics
Central Bank: Central Bank of Syria
Stock Exchange: Website dedicated to the Syrian financial market, studies and reports on Syrian and Arab investors (in Arabic).
Search Engines: Syria Online
Syria Net
Syria Gate
Economic portals: Library of Congress
Dmoz
Araboo

Political outline

Executive Power: The President is the head of state and is elected by a popular referendum for a seven-year term. The President is the commander-in-chief of the armed forces and holds the executive powers. He can declare war, issue laws, amend the constitution, and appoint civil and military personnel. The President appoints the Prime Minister (as head of the government) and his cabinet, to serve for any period of time he wishes.
Legislative Power: The legislature is unicameral in Syria. The parliament consists of the People's Council (Majlis al-Shaab) having 250 seats, with its members elected by popular vote to serve four-year terms. Syria has been under a state of emergency since 1963, which gives the President special powers.
Main political parties: Political life in Syria is controlled by the Arab Ba'th Party, a socialist and nationalist party, which has been in power since 1963. The party governs through a political alliance called the ‘National Progressive Front’, set up in 1972. Only the parties represented in the 'National Progressive Front' are allowed in the country.
Current political leaders: President : Bashar al-ASAD (since July 2000, re-elected in May 2007 with 97.62% of the vote) - Ba'th Party
Prime Minister : Muhammad Naji al-UTRI (since September 2003) - Ba'th Party
Next election dates: Presidential : 2014 (by referendum)
People's Council: 2011