(MENAFN- Brazil-Arab News Agency (ANBA)) São Paulo – Syria's economy is showing signs of recovery and has prospects for improvement, according to a report released by the International Monetary Fund (IMF) after a team visit to the country from November 10 to 13, led by Ron van Rooden. According to Rooden, these signs are grounded in improving consumer and investor sentiment under Syria's new regime.

“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,” Rooden said, also citing Syria's gradual reintegration into the regional and global economy with the lifting of sanctions and the return of more than one million refugees to the country as key drivers of the improved outlook.

The IMF's discussions with the country's authorities focused on drafting the 2026 government budget, aiming to expand fiscal space to meet essential needs-such as social programs supporting the most vulnerable-while at the same time ensuring a budget with ambitious yet achievable targets for revenue and financing.

The Fund says it will provide broad technical assistance to Syria to strengthen its fiscal framework, helping improve public finance management and revenue administration, finalize new tax laws, and develop a strategy to deal with existing debt and reinforce debt management.

Regarding the new tax regime, the IMF says it is important that it be simple, competitive, and easy to administer, avoiding generous exemptions that could create room for arbitrage and tax evasion. The Fund also calls for good-governance standards to be applied and for the Ministry of Finance to assess and monitor potential contingent liabilities while the authorities restructure state-owned enterprises and seek major investment projects with the private sector.

Another challenge the IMF is expected to help Syria address is the development of a monetary-policy framework that supports low and stable inflation. The Fund will provide assistance in drafting new financial-sector legislation and regulation, in rehabilitating the country's banking and payments systems, and in rebuilding the capacity of the local Central Bank so it can implement monetary policy and supervise the nation's financial system.

Read more:
Syria boosts yerba mate imports from Brazil

Translated by Guilherme Miranda

©Izz Aldien Alqasem/Anadolu/AFP

The post Syria's economy shows signs of recovery appeared first on ANBA News Agency.

MENAFN17112025000213011057ID1110356272