page_title: Syria
section_title: Economy
hierarchical_section_title: Syria / Economy
context_page_description: Syria, officially the Syrian Arab Republic, is a country in Western Asia, bordering Lebanon to the southwest, the Mediterranean Sea to the west, Turkey to the north, Iraq to the east, Jordan to the south, and Israel to the southwest. A country of fertile plains, high mountains, and deserts, Syria is home to diverse ethnic and religious groups, including Syrian Arabs, Kurds, Turkemens, Assyrians, Armenians, Circassians, Mandeans and Greeks. Religious groups include Sunnis, Christians, Alawites, Druze, Isma'ilis, Mandeans, Shiites, Salafis, Yazidis, and Jews. Arabs are the largest ethnic group, and Sunnis the largest religious group.
  Syria is a unitary republic consisting of 14 governorates and is the only country that politically espouses Ba'athism. It is a member of one international organization other than the United Nations, the Non-Aligned Movement; it was suspended from the Arab League in November 2011 and the Organisation of Islamic Cooperation, and self-suspended from the Union for the Mediterranean.
  The name "Syria" historically referred to a wider region, broadly synonymous with the Levant, and known in Arabic as al-Sham.
context_section_description: As of 2015, the Syrian economy relies upon inherently unreliable revenue sources such as dwindling customs and income taxes which are heavily bolstered by lines of credit from Iran. Iran is believed to spend between $6 billion and US$20 billion a year on Syria during the Syrian Civil War. The Syrian economy has contracted 60% and the Syrian pound has lost 80% of its value, with the economy becoming part state-owned and part war economy. At the outset of the ongoing Syrian Civil War, Syria was classified by the World Bank as a "lower middle income country." In 2010, Syria remained dependent on the oil and agriculture sectors. The oil sector provided about 40% of export earnings. Proven offshore expeditions have indicated that large sums of oil exist on the Mediterranean Sea floor between Syria and Cyprus. The agriculture sector contributes to about 20% of GDP and 20% of employment. Oil reserves are expected to decrease in the coming years and Syria has already become a net oil importer. Since the civil war began, the economy shrank by 35%, and the Syrian pound has fallen to one-sixth of its prewar value. The government increasingly relies on credit from Iran, Russia and China.
  The economy is highly regulated by the government, which has increased subsidies and tightened trade controls to assuage protesters and protect foreign currency reserves. Long-run economic constraints include foreign trade barriers, declining oil production, high unemployment, rising budget deficits, and increasing pressure on water supplies caused by heavy use in agriculture, rapid population growth, industrial expansion, and water pollution. The UNDP announced in 2005 that 30% of the Syrian population lives in poverty and 11.4% live below the subsistence level.
  Syria's share in global exports has eroded gradually since 2001. The real per capita GDP growth was just 2.5% per year in the 2000–2008 period. Unemployment is high at above 10%. Poverty rates have increased from 11% in 2004 to 12.3% in 2007. In 2007, Syria's main exports include crude oil, refined products, raw cotton, clothing, fruits, and grains. The bulk of Syrian imports are raw materials essential for industry, vehicles, agricultural equipment, and heavy machinery. Earnings from oil exports as well as remittances from Syrian workers are the government's most important sources of foreign exchange.
  Political instability poses a significant threat to future economic development. Foreign investment is constrained by violence, government restrictions, economic sanctions, and international isolation. Syria's economy also remains hobbled by state bureaucracy, falling oil production, rising budget deficits, and inflation.
  Prior to the civil war in 2011, the government hoped to attract new investment in the tourism, natural gas, and service sectors to diversify its economy and reduce its dependence on oil and agriculture. The government began to institute economic reforms aimed at liberalizing most markets, but those reforms were slow and ad hoc, and have been completely reversed since the outbreak of conflict in 2011.
  As of 2012, because of the ongoing Syrian civil war, the value of Syria's overall exports has been slashed by two-thirds, from the figure of US$12 billion in 2010 to only US$4 billion in 2012. Syria's GDP declined by over 3% in 2011, and is expected to further decline by 20% in 2012.
  As of 2012, Syria's oil and tourism industries in particular have been devastated, with US$5 billion lost to the ongoing conflict of the civil war. Reconstruction needed because of the ongoing civil war will cost as much as US$10 billion. Sanctions have sapped the government's finance. US and European Union bans on oil imports, which went into effect in 2012, are estimated to cost Syria about $400 million a month.
  Revenues from tourism have dropped dramatically, with hotel occupancy rates falling from 90% before the war to less than 15% in May 2012. Around 40% of all employees in the tourism sector have lost their jobs since the beginning of the war.
  In May 2015, ISIS captured Syria's phosphate mine
caption: A cove in Latakia in 2014
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