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Country facts
| Capital city: |
Damascus |
| Surface area: |
185,000 sq km |
| Population: |
20.4 million |
| Official language(s): |
Arabic |
| Head of State: |
President HE Dr Bashar Al-Asad |
| Head of Government: |
Prime Minister HE Eng Mohamed Naji Otri |
| Australian exports to Syria: |
A$30,356,000 |
| Australian imports from Syria: |
A$1,332,000 |
| Syria's principal export destinations: |
Italy, France, Saudi Arabia |
| Syria's principal import sources: |
Russian Federation, China, Italy |
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)
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Economic climate
The government has set a high priority on economic reform. Much of the economy is still state-owned and highly regulated. Some measures have been introduced to promote private enterprise and attract foreign investment; fiscal policy has focused on an overhaul and simplification of the convoluted tax system. The cabinet has been tasked to accelerate the economic reform process, although it is likely to encounter many of the same obstacles as its predecessors in the form of well-entrenched vested interests and monopolies.
The agricultural sector, cotton is the principal commodity and a key export. Wheat, barley, fruit and vegetables are the other main products, the bulk of which are grown for domestic consumption.
Oil is the main industry and provides two-thirds of Syrian export earnings, although the future of the sector is limited by the relatively small size of the Syrian Arab Republic’s reserves (which are already over half-exhausted). There are also reserves of phosphates (another export earner), iron ore and natural gas.
The rest of the industrial economy is divided roughly between three areas: chemicals, rubber and plastics; textiles and leather goods; and food and drink. The service economy is relatively under-developed but expanding rapidly: tourism especially has seen exceptional growth to the extent that the Syrian Arab Republic now receives over one million visitors annually.
A particular problem for the Syrian economy in a very arid region is the availability of water. The Syrians have concluded a long-term agreement with Turkey over use of the northern part of Tigris/Euphrates river system (which also serves Iraq), but this is still a highly sensitive issue.
For the latest key economic indicators and statistics, please see the Department of Foreign Affairs and Trade country economic fact sheet.
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Political climate
President Bashar Al-Assad officially started his second seven-year term in mid-2007, and is pursuing a program of gradual reform, based on the transition to a ‘social market’ economy.
Lifted sanctions and increased investment are among the rewards Syria could expect for co-operating with US efforts to improve regional security. Although the path to rapprochement will not be smooth, we view it as a very realistic possibility over the next year or two, given the weaknesses inherent in Syria's economic position.
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Trade relations and statistics
The Syrian Arab Republic’s trade patterns have shifted since the demise of the Soviet bloc, with which it traded extensively. It is now more vulnerable to policies from the US. Since November 2003, the Syrian Arab Republic has been subject to partial economic sanctions. This has a knock-on effect on trade with other countries.
Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.
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