Syria’s recovery requires ‘substantial’ international support: IMF

DAMASCUS (AP): Syria will require “substantial international” assistance to revive its economy, address pressing humanitarian needs, and reconstruct key institutions and infrastructure, the International Monetary Fund (IMF) said on Tuesday.

Syria cannot afford hundreds of billions of dollars in damages and losses from the conflict that first started as protests in 2011 against longtime dictator Bashar Assad and his regime.

Since the current President Ahmad al-Sharaa led the opposition that ousted Assad in December 2024, countries have gradually restored ties with Syria.

During a five-day visit by the IMF earlier this month – the first to Syria by the 191-country lending organization since 2009 – its team met with officials from the public and private sectors, notably the finance minister and central bank governor.

“Syria faces enormous challenges following years of conflict that caused immense human suffering and reduced its economy to a fraction of its former size,” the IMF said.

“While the years of conflict and displacement have weakened administrative capacity, staff at the finance ministry and central bank demonstrated strong commitment and solid understanding.”

Some 6 million people fled Syria during the conflict, and the United Nations estimates that 90% of those who stayed lived in poverty and relied on humanitarian aid to survive. Half a million people were killed in the conflict.

Damascus now anticipates investments and business projects with Qatar, Türkiye, Saudi Arabia and others, as they reestablish flight paths and hold high-level political and economic meetings.

U.S. President Donald Trump said that Washington will lift decades-long sanctions against Syria, but it is unclear how long that process could take. Britain and the European Union had eased some restrictions.

Meanwhile, oil-rich nations Saudi Arabia and Qatar paid off Syria’s debt to the World Bank, valued at nearly $15 billion.

The IMF said it is developing a road map for Syria’s policy and capacity-building priorities for key economic institutions, including the finance ministry, central bank, and statistics agency.

But Syria has a laundry list of reforms it must undertake, including improving its tax collection system, making sure its national budget can pay public sector salaries and basic healthcare and education, empowering the central bank to take measures to bring back confidence to the local currency, and rehabilitate its outdated and battered banking system in line with international standards.

In 2017, the United Nations estimated that rebuilding Syria would cost about $250 billion. Since Assad was overthrown, some experts say that number could be as high as $400 billion.