Following years of turmoil that decimated its economy and created severe humanitarian crises, Syria requires robust international assistance to recover and rebuild, according to a statement from the International Monetary Fund (IMF) on Tuesday. This support is crucial in addressing the damage caused by conflict, which began with anti-government protests in 2011.
Syria is burdened by damage and financial losses amounting to hundreds of billions, a consequence of conflicts initiated against the regime of former President Bashar Assad. These protests escalated into a full-blown insurgency, leading to a significant shift in power with current President Ahmad al-Sharaa overthrowing the Assad dynasty in December 2024. As the situation stabilizes, several nations are restoring diplomatic and economic relations with Syria.
An IMF delegation, in its first trip to the country since 2009, visited Syria for five days in early June. During this trip, they engaged with both government officials and private sector stakeholders, including key figures like the finance minister and the central bank governor. The IMF acknowledged the vast challenges faced by Syria, stating, “Years of conflict exacted a toll of immense human suffering, contracting the economy drastically.” Nevertheless, they found the finance ministry and central bank staff to be highly dedicated and knowledgeable.
The conflict caused a massive exodus, with around 6 million Syrians fleeing their homeland. The United Nations estimates that the majority of those remaining, about 90%, are mired in poverty and rely on humanitarian assistance. Deaths resulting from the conflict are estimated to be around half a million.
Today, Syria is fostering renewed economic partnerships, looking forward to investments and business ventures from countries like Qatar, Turkey, and Saudi Arabia. These nations are reestablishing flight connections and holding high-level meetings to discuss potential collaborations.
Additionally, the announcement by U.S. President Donald Trump regarding the lifting of long-standing sanctions against Syria signifies a potential shift, although the timeline remains uncertain. While Britain and the European Union have eased certain restrictions, oil-rich nations like Saudi Arabia and Qatar have generously settled nearly $15 billion of Syria’s debt with the World Bank.
The IMF is strategizing a roadmap to bolster Syria’s economic framework, addressing policy and capacity-building priorities across critical sectors, including the finance ministry, central bank, and statistical office. However, Syria faces a formidable list of reforms necessary for its recovery. This includes overhauling the tax collection system, ensuring the national budget suffices for public wages and basic health and education services, restoring credibility to the local currency via central bank interventions, and updating the banking infrastructure to meet international standards.
Previous UN estimates in 2017 pegged Syria’s rebuilding costs at about $250 billion. However, following the overthrow of Assad, some experts speculate these costs could now exceed $400 billion, highlighting the massive scale of reconstruction efforts needed.