Return of refugees boosts Syrian economy
International Monetary Fund (IMF) mission says the country is expected to post double-digit growth this year and continue rebuilding its economy despite ongoing conflicts and challenges. The post Return of refugees boosts Syrian economy appeared first on ANBA News Agency .
Syria's economy is experiencing a resurgence in 2025, buoyed by the return of a substantial number of refugees and a revival in key sectors such as agriculture, according to a recent report from the International Monetary Fund (IMF). From July 19 to 23, IMF officials visited Damascus to discuss the nation's economic progress with local authorities, and their findings have been made public on August 4.
The IMF's assessment reveals that Syria's economy has begun its recovery process in 2025, with consumer and investor confidence reaching new heights. This economic growth is further fueled by the return of approximately 1.5 million refugees, who are contributing to increased consumption and investment. Despite the challenges posed by a severe drought last year that impacted agricultural production, Syria's economic recovery has remained resilient, with double-digit growth anticipated for this year.
Factors driving this growth include improved rainfall, which has enhanced agricultural output, increased hydrocarbon production and electricity supply, and bolstered trade and services. Ron van Rooden, the head of the IMF mission to Syria, emphasized that economic activity is driven by the ongoing return of refugees, a significant rise in visitor numbers, and the government's policies aimed at restoring macro-economic stability and fostering a private-sector-led recovery.
Looking ahead, the IMF projects that economic growth will persist into the following year, although it may vary across Syria's regions, where poverty rates continue to be a significant concern. Inflation is expected to remain high in 2025 due to heightened consumer demand and the escalating cost of importing fuel and food. However, the IMF projects that inflation pressures will ease in 2027, provided that monetary and fiscal policies remain effective.
Despite these positive developments, the IMF acknowledges that Syria still necessitates international support to address the humanitarian needs of its population. The Fund advocates for a sustainable reintegration of returning refugees and internally displaced people, emphasizing the importance of creating productive employment opportunities, improving public service delivery, and restoring housing and infrastructure.
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