Syria’s economy continues to deteriorate amid the ongoing conflict that began in 2011. The economy further contracted in 2013 as a result of international sanctions, widespread infrastructure damage, reduced domestic consumption and production as well as sharply rising inflation.
The government has struggled to address the effects of economic decline, which have included dwindling foreign exchange reserves, increasing budget and trade deficits and the decreasing value of the Syrian Pound.
Syria’s economy remains highly regulated by the government. Long-run constraints include foreign trade barriers, declining oil production, high unemployment, rising budget deficits, increasing pressure on water supplies caused by heavy use in agriculture, rapid population growth, industrial expansion and water pollution.
Composition of GDP (2013)