Syria’s economy is showing signs of recovery nearly a year since the fall of Bashar Al Assad’s regime, the International Monetary Fund said on Monday, after a staff team visited Damascus.
Ron van Rooden, IMF mission chief to Syria, said the country’s brighter economic prospects reflect improving business and consumer sentiment, Damascus’s reintegration into the regional and global economy, and the return of more than a million refugees.
“The authorities have been able to adopt a tight fiscal and monetary stance within the many constraints they face, with a view to ensuring economic and financial stability,” Mr Van Rooden said in a statement.
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The IMF mission comes about a month since the IMF and World Bank annual meetings in Washington, where a Syrian delegation made the case for foreign investment as part of a broader effort to reconnect with the global financial system. Syrian officials acknowledged they lacked the technical know-how to tackle reconstruction efforts after being cut off from the worldwide economy during the Assad regime.
The fund said it would provide technical assistance by helping Syria to improve public financial management, finalise new tax legislation and address Syria’s legacy debt. The IMF said the new tax regime should be simple, and that the government’s efforts to restructure state-owned enterprises and large investment projects adhere to strong governing standards.
“Staff also initiated discussions on developing an appropriate monetary policy framework that would support ensuring low and stable inflation, while considering the current challenges in the financial system,” Mr Van Rooden said.
The fund said it would support the Syrian government with forming new financial sector legislation and regulation, rehabilitate the payment and banking systems and rebuild central bank capacity.
The IMF added improving statistics would help pave the way for Article IV consultations with Syria, which have not been held since 2009. Support has already begun to improve national accounts data, which will be expanded to cover other statistics and finance.
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The staff visit to Damascus came in the same week as Syrian President Ahmad Al Shara‘s trip to Washington, where he signed an agreement to join the International Coalition to Defeat ISIS after a meeting with President Donald Trump at the White House.
The Trump administration also announced the temporary lifting of the Assad-era Caesar Act, the umbrella under which most US sanctions are held. A permanent removal requires congressional action.
Mr Al Shara also held talks with IMF managing director Kristalina Georgieva at the fund’s headquarters as part of his visit.