Syrian Arab Republic 

Syrian Arab Republic country policy

Policy established 23 June 2011

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Country class: 7

Syrian Arab Republic country facts

Atradius Dutch State Business Economic Research

Country Report last updated July 13th, 2011

Country: SYRIA 
 

Political Situation

                                                                        
Popular Unrest Is Tackled By Cosmetic REFORM AND BRUTAL FORCE
Head of state
President Bashar al-Assad, elected by referendum in 2000 after the death of his father Hafiz al-Assad; re-elected in 2007.  

Form of government
Legislative power is held by 250-member People's Council, elected for a 4-year term. Of the 250 seats 167 seats are reserved for the National Progressive Front which is headed by the Arab Nationalist Baath-party (134 seats).

Internal Economic Situation
Hit By The Political Unrest

General situation
Real GDP-growth is hit by the political unrest, dipping to 1.1% (or even less) in 2011 as FDI , tourism and business activities were curtailed. Adverse weather conditions (incl. a chronic shortage of water) is hampering output of cotton /textiles and wheat, limiting GDP-growth as well. Cotton crop this year is also affected by the boll weevil. Higher food prices are fueling the rate of inflation, possibly reaching 10% end-2010 and 2011. High corruption: 127th out of 178 in the TI-Index. Despite legalisation/erection of private banks, the sector is still dominated by inefficient, state run banks with limited access to credit. 
                                                                            
 
External Economic Situation
Reasonable Liquidity And Solvency But ALSO PAYMENT ARREARS
Main sources of foreign exchange
Oil (34%), textiles (11%), cotton (6%), phosphates; tourism receipts (increasing).

Main foreign markets
Iraq (31%), EU, Lebanon.

Main expenses of foreign exchange
Metal products (15%), fuels (14%).

Balance of payments 
Rising trade/current account deficits are reflecting domestic overspending. Financial support from Arab countries are compensating these deficits. To prevent a run on the Syr. Pound, Central Bank has introduced restrictions on forex transactions.