The International Monetary Fund said on Tuesday that Syria's economic recovery is being unevenly felt across the country, as the fund agreed on a technical assistance programme for Damascus.
“Syria’s economic recovery is accelerating,” IMF mission chief Ron Van Rooden said in a statement after a visit to Damascus in mid-July.
Despite the war in Iran, the IMF expects that economic activity in Syria will expand due to the agricultural sector's recovery, rising hydrocarbon production, improved electricity provision and growth in trade and services. The continuing return of refugees and a large increase in visitors are also expected to support economic activity, which the fund said is projected to remain strong next year.
“Growth is uneven across regions, however, and poverty, while somewhat reduced, remains widespread,” Mr Van Rooden said.
Syria's economy is gradually opening up after the toppling of the Assad regime in 2024. The World Bank estimates reconstruction costs could climb to $216 billion.
The US has slowly been dismantling its sanctions regime on Syria since President Ahmad Al Shara came to power in 2025. Last month, US President Donald Trump notified Congress of his intent to delist the country as a state sponsor of terrorism.
Gulf states and companies including DP World are moving to invest in Syria. DP World is launching operations at the Tartus port, a project that includes an $800 million commitment to upgrade infrastructure. Saudi Arabia has also signed deals involving energy and infrastructure.
Meanwhile, Syria is seeking to position itself as a shipping alternative to the Strait of Hormuz, where tanker traffic remains depressed amid the Iran war. Iraq and Syria reached a US-brokered agreement to revive the defunct Kirkuk-Baniyas pipeline which, when complete, will have an initial production of 2 million barrels per day of crude oil.
Inflation is expected to pick up this year due to strong domestic demand and higher import prices before slowing in 2027. The central government's budget ended in 2025 with a small surplus, the IMF said, while it expects revenue to increase “substantially” this year.
The latest visit is the fund's fourth since restoring relations with Syria after the fall of the Assad regime in 2024. It has not held Article IV consultations with Damascus since 2009 due to a lack of adequate data.
Syrian officials have not asked for a bailout package from the fund, but have instead sought technical assistance as the country's banking system remains dysfunctional.
“It is of critical importance to accelerate efforts to rehabilitate the banking system,” Mr Van Rooden said.
The fund said immediate priorities included developing and adopting new central bank and banking laws and conducting an assessment of banks' financial health.
It also said Damascus must strengthen its anti-money laundering and counter-terrorism financing frameworks. Syria remains on the Financial Action Task Force grey list.
“Given Syria’s large humanitarian and development needs, strong and timely international financial support is still needed,” Mr Van Rooden said. “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 IMF said it agreed on an extensive programme of technical assistance with capacity-building activities focused on public financial management, revenue mobilisation and public debt management.
For financial sector reforms, focus will be on preparing new financial sector legislation, rehabilitating the banking sector, strengthening banking supervision as well as the anti-money laundering and counter-terrorism finance framework. The central bank will also receive support in developing an appropriate monetary policy framework.
