Editing Economy of Syria (section)

==External trade and investment==
[[Image:2006Syrian exports.PNG|thumb|350px|Syrian exports in 2006]]
Despite the mitigation of the severe [[drought]] that plagued the region in the late 1990s and the recovery of energy export revenues, Syria's economy has historically faced serious challenges.

Commerce has always been important to the Syrian economy,<ref>{{cite web |title=Policies for business in the Mediterranean Countries |url=http://unpan1.un.org/intradoc/groups/public/documents/caimed/unpan018700.pdf |publisher=Centre for Administrative Innovation in the Euro-Mediterranean Region |archive-url=https://web.archive.org/web/20190218034915/http://unpan1.un.org/intradoc/groups/public/documents/caimed/unpan018700.pdf |access-date=5 November 2021 |archive-date=18 February 2019 |url-status=dead}}</ref> which benefited from the country's strategic location along major east–west [[trade route]]s. Syrian cities boast both traditional industries such as [[weaving]] and dried-fruit packing and modern [[heavy industry]]. Given the policies adopted from the 1960s through the late 1980s, Syria refused to join the "[[economic globalization|global economy]]". In late 2001, however, Syria submitted a request to the [[World Trade Organization]] (WTO) to begin the accession process. Syria had been an original contracting party of the former [[General Agreement on Tariffs and Trade]] but withdrew in 1951 because of Israel's joining. Major elements of current Syrian trade rules would have to change in order to be consistent with the WTO. In March 2007, Syria signed an [[Association Agreement]] with the [[European Union]] that would encourage both sides to negotiate a free trade agreement before 2010.

The bulk of Syrian [[International trade|import]]s have been raw materials essential for industry, agriculture, equipment, and machinery. Major exports include [[crude oil]], refined products, [[cotton|raw cotton]], [[clothing]], fruits, and [[cereal]] grains.

Over time, the government has increased the number of transactions to which the more favorable neighboring country exchange rate applies. The government also introduced a quasi-rate for non-commercial transactions in 2001 broadly in line with prevailing [[black market]] rates.

Given the poor development of its own [[capital market]]s and Syria's lack of access to international money and capital markets, monetary policy remains captive to the need to cover the [[budget deficit|fiscal deficit]]. Although in 2003 Syria lowered [[interest rate]]s for the first time in 22 years and again in 2004, rates remain fixed by law.

{{As of|2012}}, because of the ongoing Syrian civil war, the value of Syria's overall exports has been slashed by two-thirds, from the figure of US$12&nbsp;billion in 2010 to only US$4&nbsp;billion in 2012.<ref name="AFP economy">{{cite news|title=Syria's battling economy may hold on with help from friends |url=https://www.google.com/hostednews/afp/article/ALeqM5iIP7T7v6W5nxdJfSVrQhm5aszqgQ?docId=CNG.7610691ef383e1f07fd5e86d87ebce6e.561 |agency=Agence France-Presse |access-date=28 August 2012 |url-status=dead |archive-url=https://web.archive.org/web/20120823112658/https://www.google.com/hostednews/afp/article/ALeqM5iIP7T7v6W5nxdJfSVrQhm5aszqgQ?docId=CNG.7610691ef383e1f07fd5e86d87ebce6e.561 |archive-date=23 August 2012 }}</ref> Syria's GDP declined by over 3% in 2011.<ref>{{cite news|url=http://www.ft.com/cms/s/0/2ceb7690-50df-11e1-8cdb-00144feabdc0.html |title= Syria's ailing economy hits citizens and regime |work=Financial Times |date=6 February 2012|access-date=24 August 2012}}</ref>

===Debt===
Under Syrian President [[Bashar al-Assad|Bashar Assad]], national debt in relation to GDP went from 152.09% in 2000 down to 30.02% in 2010.<ref>[https://www.statista.com/statistics/326945/national-debt-of-syria-in-relation-to-gross-domestic-product-gdp/ Syria: National debt from 2000 to 2010 in relation to gross domestic product (GDP)]. ''Statista''</ref> Prior to the civil war, Syria attempted to ease its heavy [[Government debt|foreign debt]] burden through bilateral rescheduling deals with virtually all of its key [[creditor]]s in Europe, including Germany, France, and Russia.<ref name=":4">{{Cite web |title=Syria (05/07) |url=https://2009-2017.state.gov/outofdate/bgn/syria/85051.htm |access-date=June 1, 2024 |website=[[United States Department of State]]}}</ref> In December 2004, Syria and [[Poland]] reached an agreement by which Syria would pay $27 million out of the total $261.7 million debt.<ref>{{Cite web|title=Syria – Economy|url=https://www.globalsecurity.org/military/world/syria/economy.htm|access-date=2021-07-15|website=globalsecurity.org}}</ref> In January 2005, [[Russia]] and Syria signed a deal that wrote off nearly 75% of Syria's debt to Russia, approximately $13 billion.<ref>{{Cite news|date=2011-09-19|title=Why Russia is blocking international action against Syria|work=Christian Science Monitor|url=https://www.csmonitor.com/World/Middle-East/2011/0919/Why-Russia-is-blocking-international-action-against-Syria|access-date=2021-07-18|issn=0882-7729}}</ref> The agreement left Syria with less than €3 billion (just over $3.6 billion) owed to Moscow. Half of it would be repaid over the next 10 years, while the rest would be paid into Russian accounts in Syrian banks and could be used for Russian investment projects in Syria and for buying Syrian products. Later that year, Syria reached an agreement with [[Slovakia]] and the [[Czech Republic]] to settle an estimated $1.6 billion in debt, in exchange for a one time payment of $150 million.<ref name=":4" />