Manufacturing base has grown. Thriving agricultural sector. Weaknesses High defense spending is a major drain on economy. Large black market. Economy dominated by inefficient state-run companies.
Autocratic regime deters foreign investment.
High population growth. Profile Billions of dollars flowed into the Syrian economy from the USA, Japan, the EU, and Saudi Arabia and other Gulf states following the 1990-1991 Gulf War. This cash injection, along with increased oil revenue, led to rapid growth. Also, a decision to divert water from the river Euphrates toward fertile plains, rather than using it to irrigate poorer land, led to a rise in agricultural output. However, long-term economic prospects remain uncertain.