Economy of Syria

Syria’s economy is one of the oldest in the region, historically shaped by agriculture, trade, and the country’s strategic position linking Asia, Europe, and the Mediterranean. Prior to the conflict that began in 2011, Syria maintained a mixed economy that combined state-led planning with gradual market-oriented reforms. 

However, years of instability, sanctions, damaged infrastructure, and reduced productive capacity have significantly transformed the country’s economic landscape. Despite these challenges, various sectors—particularly agriculture, small-scale industry, and internal trade—continue to support livelihoods and contribute to limited economic recovery efforts.

Today, Syria’s economy operates within a context of reconstruction needs, shifting regional dynamics, and constrained resources, yet remains anchored in the resilience and adaptability of its people.

Key Economic Sectors

Agriculture

Agriculture has long been a cornerstone of the Syrian economy. Before the crisis, it accounted for a substantial share of employment and GDP. Even today, the sector remains vital for food security and rural livelihoods.
Key agricultural products include:
  • Wheat and barley
  • Cotton and sugar beet
  • Olives, citrus fruits, and grapes
  • Livestock such as sheep and cattle
Agricultural output fluctuates heavily due to water scarcity, climatic conditions, and access to fuel and inputs.

Oil and Gas

Syria once relied significantly on oil production for government revenue and export earnings. While many oil fields have been damaged or fallen outside state control, the sector still plays a role in domestic energy supply and limited production activities. Future economic reconstruction may depend on restoring energy infrastructure and stabilizing production.

Trade and Industry

Manufacturing Sector

Historically, Syria maintained a strong manufacturing base, including:

  • Textiles and clothing
  • Pharmaceuticals
  • Food processing
  • Chemicals and basic metals
Much of this industrial capacity suffered damage during the conflict, but small- and medium-sized enterprises (SMEs) continue to operate in safe or restored areas.

Domestic and External Trade

Damascus, Aleppo, and other commercial hubs were once major centers for regional trade. Although current trade routes and volumes are significantly reduced, cross-border commerce continues in limited form, often focused on agricultural goods, textiles, and basic commodities. Restrictions, sanctions, and fluctuating currency values heavily influence trade activity.

Fiscal and Monetary Conditions

The Syrian pound has undergone considerable depreciation, affecting purchasing power, imports, and business operations. Inflation remains a persistent challenge due to high import costs, limited local production, and disruptions in supply chains. The government continues to manage fiscal pressures through subsidies, controlled pricing systems, and efforts to support essential commodities, though resources remain strained.

Reconstruction and Economic Recovery Efforts

Rebuilding Syria’s economy involves complex priorities:

  • Infrastructure rehabilitation to restore transport networks, electricity systems, and essential public services.
  • Support for agriculture, including improved irrigation and access to seeds and equipment.
  • Revitalizing industry, particularly SMEs that create local jobs.
  • Encouraging investment, though sanctions and security considerations limit large-scale projects.
  • Strengthening local markets, helping communities rebuild small businesses and supply chains.
These efforts are gradual and heavily dependent on stability and international engagement.

The economy of Syria remains heavily affected by years of conflict, reduced production, and structural challenges. However, core sectors such as agriculture, small industries, and internal trade continue to function as vital pillars supporting daily life and limited economic activity. Long-term recovery will depend on sustainable reconstruction, improved infrastructure, and favorable regional conditions.

Despite the obstacles, the resilience of Syria’s workforce and its resource-rich geography offer the potential for gradual rebuilding and future economic stabilization.