Economic Growth Rate to Fall

Syria’s economic growth is expected to decline to three per cent as a result of the global financial crisis, the pro-government website Syria Tomorrow reported on October 20.



The government’s planning committee presented a largely pessimistic view at a recent meeting, predicting that the economy would grow by three per cent in 2008 and next year. Economic growth was 4.1 per cent last year and 6.6 per cent in 2006.



Declining demand for Syrian exports, which contributed to 58 per cent of the growth in 2006 and 2007, is expected to lead the downward trend, according to the report. Syria is also expected to increase imports.



Foreign investment in Syria is expected to fall because of the global crisis. The committee anticipates that remittances from Syrian emigrants, who sent home an estimated 40 billion lira last year, will decline.



The falling growth rate could affect the value of the Syrian lira, boost employment and poverty levels, and reduce the standard of living in Syria, especially for low-income families, Syria Tomorrow reported.



But there will be a small silver lining – prices are expected to fall, according to the website.