IMF forecasts Syria double-digit growth

The International Monetary Fund (IMF) staff team visited Damascus from July 19-23, 2026, to assess Syria's economic conditions and discuss reform priorities. Following the visit, the IMF projected that Syria's economy would grow at a double-digit rate in 2026, with strong momentum continuing into 2027. The recovery, which began in 2025 after the regime change, has been supported by the return of about 1.5 million refugees, improved rainfall boosting agriculture, expanding hydrocarbon production and electricity provision, and growth in trade and services. However, the IMF warned that poverty remains widespread and growth is uneven across regions. Inflation, which slowed to low double digits in 2025, has accelerated in 2026 due to higher fuel and food import prices linked to regional conflict, strong domestic demand, and public-sector wage increases. The IMF expects inflation to ease in 2027 if import price pressures subside and sound fiscal and monetary policies are maintained. The central government recorded a small budget surplus in 2025, and revenues are expected to rise in 2026. The IMF urged continued fiscal discipline, banking-sector rehabilitation, and improved data quality. It agreed with Syrian authorities on a technical assistance program covering fiscal management, taxation, debt management, banking reform, monetary policy, anti-money laundering, and economic statistics.