Capital City: Damascus
	It is %T:%M %A in Damascus

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Economic trends

Syria is gradually moving from a highly state-controlled economy to one with greater market freedom in which privatization playing an important role. The economy's liberalisation applies more to the banking sector for the moment. The GDP growth rate was 4.4% in 2006 and3.9% in 2007. The strong regional political instability (country's proximity to Iraq, Syria's role in Lebanon, and tension with Israel) are discouraging foreign investments. IMF forecasts a growth rate of 3.7% in 2008. Inflation was estimated at around 7% in 2007. The unemployment rate remains high, more than 10%.

Main branches of industry

Syria's economy is heavily dependent on agriculture. It contributes nearly 20% to the GDP and employs one-third of the active population. The land under cultivation has increased by more than 50% since 1970, largely because of government incentives and more efficient use of irrigation methods. The principal crops include wheat, potatoes, sugar beets, and barley. Large numbers of poultry, cattle, and sheep are also raised. The oil and gas sector is very important to economy and contributes 65% to the country’s exports. The main industrial sectors are: petroleum refining, textiles, food-processing, chemicals, and precision engineering. Handicrafts such as articles of silk, leather, and glass are widely produced. However, manufacturing sector is less productive and contributes nearly 25% to the GDP. Services sector is growing and contributes more than 50% to GDP, thanks particularly to tourism.

International trade

Syria is quite open to international trade. Free-trade agreements have been signed with Lebanon, Jordan, Morocco and Iraq. Syria also signed an Association Agreement with the EU in October 2004. The share of foreign trade in country’s GDP is nearly 70%. Its top three export partners are: Italy, France and Iraq. Syria mainly exports mineral fuels & oils, cotton, livestock, and cereals. The top three import partners are: Ukraine, China and Turkey. The country mainly imports iron & steel, nuclear reactors & boilers, machinery, vehicles, mineral fuels & oils, and plastics.