Editing Economy of Syria (section)

=== 1980s: Crisis and austerity ===
By the mid-1980s, the country's economic climate had shifted from prosperity to austerity.<ref name=":3" /> Syria's economic boom collapsed as a result of the rapid fall of world oil prices, lower export revenues, drought affecting agricultural production, and falling worker remittances.<ref name=":3" /> Also, Arab aid levels decreased because of economic retrenchment in the oil-producing states and Syrian support for Iran in the [[Iran–Iraq War|Iran-Iraq War]].<ref name=":3" /> Real per capita GDP fell 22% between 1982 and 1989.<ref name="fred.stlouisfed.org">{{cite web|date=January 1960|title=Purchasing Power Parity Converted GDP per Capita (Chain Series) for Syria|url=https://fred.stlouisfed.org/series/RGDPCHSYA625NUPN|access-date=25 October 2018|website=Purchasing Power Parity Converted GDP Per Capita (Chain Series) for Syria|publisher=FRED Economic Data: Federal Reserve Bank of St Louis}}</ref> To restore the economy, the government sharply reduced spending, cut back imports, encouraged more private sector and foreign investment, and launched an anticorruption campaign against smugglers and black-market money changers.<ref name=":3" /> However, massive defense outlays continued to divert resources from productive investments.<ref name=":3" />

By the late 1980s, spot shortages of basic commodities occurred frequently, and industry operated far below capacity because of routine power outages.<ref name=":3" /> Foreign exchange reserves plummeted, the trade deficit widened, and real gross domestic product growth fell as economic difficulties compounded.<ref name=":3" /> Although the government instituted limited reforms to respond to the burgeoning crisis, Syria's pressing economic problems required a radically restructured economic policy to improve future economic performance.<ref name=":3" />