The International Monetary Fund (IMF) has highlighted positive developments in Syria’s economy, noting a small fiscal surplus in 2025 and an accelerating recovery driven by prudent government policies. Following a delegation visit to Damascus, the IMF’s assessment has been welcomed by officials from the Syrian Ministry of Finance as a crucial step towards rebuilding international investor confidence.
Fiscal Prudence and a Positive Outlook
According to the IMF, Syria achieved a small fiscal surplus last year as economic activity began to rebound. This was attributed to the interim government’s prudent approach, ensuring spending remained aligned with available resources. Ron van Rooden, the IMF’s chief for Syria, noted that improving sentiment, the lifting of sanctions, and regional reintegration were key contributors to growth.
The government’s 2026 budget, which aims to significantly increase public investment in healthcare, education, and infrastructure, was deemed “ambitious but feasible” by the fund. The IMF also commended the focus on bolstering the social safety net and encouraged the continued digitization of government financial services.
Monetary Policy and Banking Reform
Syria’s central bank was praised for its effective management under significant constraints, which led to a “remarkable slowdown” in inflation and an improved exchange rate over 2024. As the country prepares to introduce a new currency, the IMF has emphasized the need to strengthen the central bank’s independence and capacity.
The fund also stressed the importance of conducting a thorough assessment of the country’s banking system. Rehabilitating the sector is seen as essential for restoring public confidence and enabling it to function as a key tool for domestic and international financial intermediation.
Syrian Officials Welcome Assessment
Syrian officials have responded positively to the IMF’s statement. Finance Minister Mohammed Yisr Barnieh stated that the positive evaluation would help bolster confidence among international investors and financial institutions, potentially opening doors for broader cooperation and support.
Central Bank Governor Abdulkader Husrieh echoed these sentiments, welcoming the acknowledgment of the bank’s tight monetary policy. He added that the government is focused on modernizing its monetary framework and restructuring the banking sector to restore public trust.
About the Ministry of Finance Syria
The Ministry of Finance in Syria is the government body responsible for managing the country’s public finances. Its duties include formulating and implementing fiscal policy, preparing the national budget, managing public debt, collecting revenues, and overseeing government expenditures to promote economic stability and sustainable growth.
Source: AGBI
