The World Bank has projected that Syria’s gross domestic product (GDP) will experience a modest growth of 1 percent in 2025, following a contraction of 1.5 percent in 2024.
“The easing of sanctions provides some upside potential; however, progress remains limited as frozen assets and restricted access to international banking continue to hinder energy supply, foreign assistance, humanitarian support, and trade and investment,” the World Bank stated in a recent announcement.
Syrian Finance Minister Mohammed Yusr Barnieh underscored that lifting sanctions represents a crucial and significant step that will positively influence the Syrian economy. Concurrently, Governor of the Central Bank of Syria, Abdulqadir Al Hasriya, characterized this moment as a historic opportunity to advance efforts in enhancing transparency and governance within financial institutions, as well as integrating the Syrian financial system into the international framework.
On June 25, the World Bank approved a $146 million grant aimed at bolstering electricity supplies and facilitating economic recovery in Syria. Following that, on June 30, U.S. President Donald Trump issued an executive order that transformed the temporary freeze on sanctions targeting Syria’s financial and banking sector into a permanent lifting. This executive order concluded the national emergency that had been in effect since 2004, which imposed comprehensive sanctions on Syria that impacted most state-run institutions, including the central bank.
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Historic visit and engagement
In June 2025, the International Monetary Fund (IMF) indicated that Syria will require “substantial international” support to rehabilitate its economy, address urgent humanitarian needs, and rebuild essential institutions and infrastructure. During a five-day visit in early June—marking the first by the 191-country lending organization since 2009—the IMF team engaged with officials from both the public and private sectors, including 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 noted. “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.”
U.S. President Donald Trump has lifted decades-long sanctions against Syria, with the European Union and the United Kingdom also easing some restrictions. In a significant move, oil-rich nations Saudi Arabia and Qatar settled Syria’s debt to the World Bank, which was valued at nearly $15 billion (€13 billion).
The IMF is currently developing a roadmap for Syria’s policy and capacity-building priorities for key economic institutions, including the finance ministry, central bank, and statistics agency.
