End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.
Damascus, Syria: A staff team from the International Monetary Fund (IMF), led by Ron van Rooden, visited Damascus from July 19–23, 2026, to discuss the authorities’ reform progress and priorities, as well as further technical assistance activities. At the conclusion of the mission, Mr. van Rooden issued the following statement:
“Syria’s economic recovery is accelerating. In 2025, the economy started to recover with improved consumer and investor sentiment following the regime change, the return of about 1.5 million refugees, and Syria’s gradual re-integration with the regional and global economy, which helped offset the dampening effect on growth of a major drought that adversely affected agriculture. In 2026, growth is expected to reach double digits, despite the ongoing conflict in the region, as agriculture is recovering strongly with improved rainfall, hydro-carbon production and electricity provision are expanding, and trade and services continue to grow. Economic activity is supported by the continuing return of refugees, a large increase in visitors, and more generally by the authorities’ policies aimed at restoring macro-economic stability and achieving a strong, private-sector-led recovery. Growth is projected to remain strong in 2027. Growth is uneven across regions, however, and poverty, while somewhat reduced, remains widespread.
“Inflation, which had slowed markedly in 2025 to low double digits, has picked up considerably so far in 2026, reflecting not only the impact of higher import prices, notably for fuel and food, as a result of the regional conflict, but also due to strong domestic demand, including from public sector wage increases—albeit from very low levels and helping to improve living standards—and higher utility prices—to achieve cost recovery and reduce quasi-fiscal costs—and reflecting rising housing cost. Inflation is expected to slow in 2027, provided import price pressures ease and sound fiscal and monetary policies are pursued.
“Fiscal performance is improving markedly. The central government budget ended 2025 with a small surplus, by containing spending to the limited resources available and with spending focused on meeting essential needs. Revenues are projected to increase substantially in 2026, with a significant increase in tax and customs revenues already realized in the first half of the year and owing also to rising hydro-carbon revenues, as well as some one-off revenues, including from telecom license and fuel transit fees. Together with expected available financing this will allow the execution of most budgeted expenditures, although resource constraints will likely require capital spending to be contained. It will be important to maintain sound fiscal policies in 2027, including by basing the 2027 central government budget on conservative revenue and financing assumptions and by containing current spending.
“To put in place strong and sustainable public finances, it is essential to continue strengthening public financial management, building on the considerable progress already made especially in strengthening budget preparation and execution, notably by containing—and enhancing oversight and controls over—off-budget operations, quasi-fiscal activities, and contingent liabilities, including from government guarantees. The authorities are also rightly focusing on further improving revenue mobilization, through tax reform and strengthening tax and customs administration, while tax exemptions should be limited. Further improvement in revenue mobilization and spending prioritization is critical to create the fiscal space needed to create room for development spending and to enhance the social safety net to protect the most vulnerable segments of the population.
“Given Syria’s large humanitarian and development needs, strong and timely international financial support is still needed. Sustainable reintegration of returning refugees and internally displaced people requires support beyond humanitarian assistance, focused also on creating productive employment opportunities, enhancing public service delivery, and restoring housing and infrastructure. The authorities’ ability to mobilize financing for development will also depend on progress toward addressing Syria’s legacy debt in a comprehensive manner and developing a domestic securities market.
“The Central Bank of Syria has successfully managed the introduction of the new currency. Monetary policy, however, remains severely constrained by a highly dysfunctional banking system and a lack of monetary policy instruments. Thus, it is of critical importance to accelerate efforts to rehabilitate the banking system, enabling it to fulfill its essential role in financial intermediation and facilitating payments, both domestically and internationally, as well as to provide the central bank with an effective mechanism for the transmission of monetary policy. Immediate priorities include the development and adoption of new central bank and banking laws—providing the central bank with a mandate to ensure price stability and strong bank supervision and resolution powers—and conducting a thorough assessment of banks’ financial health in line with international best practice. In parallel, to promote Syria’s re-integration into the international financial system and facilitate much-needed investment and financial flows, the AML/CFT framework needs to be enhanced, including to achieve Syria’s removal from FATF’s grey list.
“The IMF continues to support the authorities in their efforts to rehabilitate Syria’s economy and improve the functioning of key economic institutions, building on the considerable progress they have made over the last year-and-a half. As part of this support, an extensive program of technical assistance was agreed for the period ahead. In the area of fiscal reforms, capacity building activities will focus on: (i) public financial management, including cash management, and budget preparation and execution; (ii) revenue mobilization, including tax policy and tax and customs administration; and (iii) public debt management and developing local capital markets. In the area of financial sector reforms, activities will focus on: (i) the preparation of new financial sector legislation and regulation; (ii) the rehabilitation of the banking sector; (iii) strengthening banking supervision; (iv) enhancing the AML/CFT framework, and (v) supporting the central bank in developing and implementing an appropriate monetary policy framework. Progress has been made in the preparation of a debt sustainability analysis, notably with the compilation of comprehensive debt data. However, gaps in the availability and quality of essential economic data remain, hampering a more detailed assessment of Syria’s economic developments. Capacity building activities will therefore also continue to focus on improving statistics—covering national accounts, price, balance of payments, government finance, and monetary and financial statistics. Progress in data availability and quality will facilitate the resumption of Article IV consultations with Syria, as requested by the authorities.
“The staff team is grateful to the authorities for the transparent and constructive discussions, and for their warm hospitality during this mission. The team met with Minister of Finance Mohamad Yisr Barnieh, Governor of the Central Bank of Syria Safwat Raslan, as well as other senior officials.”
