An International Monetary Fund, IMF, delegation has concluded a visit to Damascus, highlighting continued early signs of recovery in the Syrian economy, improved confidence indicators, and a slight surplus in the 2025 state budget. The Fund stressed, however, the need to complete structural reforms to ensure sustainable growth and financial stability in the coming years.
The IMF delegation visited Syria between February 15 and 19 as part of what the Fund describes as an “Intensive Cooperation Program” with the country.
In a statement issued on Wednesday, February 25, and published on its official website, the IMF said the mission aimed to assess Syria’s economic conditions and hold discussions with Syrian authorities on progress in economic reforms, policy priorities, and capacity-building plans for the next phase.
The visit was led by Ron van Rooden, head of the IMF mission to Damascus and Deputy Director at the Fund. The mission concluded that the Syrian economy continues to show signs of recovery, with a noticeable increase in economic activity in recent months. This improvement has been supported by rising consumer and investor confidence and the continued return of refugees.
The statement also noted increased electricity supply, improved rainfall levels, and Syria’s gradual regional reintegration as contributing factors.
The delegation focused on evaluating the recovery trajectory, reviewing fiscal and monetary reform priorities, and expanding technical assistance and capacity-building programs.
The mission’s concluding statement reflects the views of IMF staff and does not necessarily represent the views of the IMF Executive Board. It portrays an economy that “continues to show signs of recovery,” while underscoring the importance of completing reforms to secure long-term growth and financial stability.
Intensive Cooperation Program
According to the IMF statement, the Intensive Cooperation Program aims to:
Support Syrian authorities in rehabilitating the economy and key economic institutions through policy advice and technical assistance. Provide broad support to the Ministry of Finance and the Central Bank of Syria. Improve economic statistics, paving the way for the resumption of Article IV consultations with Syria.Article IV of the IMF’s Articles of Agreement provides for regular, usually annual, bilateral consultations with member states. IMF experts visit the member country, gather economic and financial data, and hold discussions with officials on economic developments and policies. Upon returning to IMF headquarters, the team prepares a report that forms the basis for discussions by the Executive Board.
Growth Prospects in 2026
The IMF statement pointed to an acceleration in economic activity in recent months, driven by several factors. Fund experts believe these developments open the door to promising growth prospects in 2026 and beyond, particularly if progress continues in national reconciliation and regional reintegration.
Preliminary data show that Syria’s 2025 state budget closed with a slight surplus, due to:
Focusing spending on essential needs and wage increases. Rationalizing expenditures in line with available resources. The Ministry of Finance refraining from financing the deficit through the Central Bank.The IMF considered the absence of monetary financing of the budget a significant shift compared to previous years.
For the 2026 fiscal year, Syria’s draft budget is expected to expand spending significantly on healthcare, education, wage increases, and infrastructure rehabilitation.
Although revenue projections were described as “ambitious but achievable,” the IMF emphasized the importance of precautionary safeguards if expectations are not met, including:
Protecting social spending. Strengthening the social safety net for the most vulnerable groups. Improving the efficiency and transparency of public spending. Accelerating the digital transformation of government services.The Fund also stressed that the Ministry of Finance should play a central role in evaluating public-private partnership projects and managing contingent liabilities, alongside reforming the governance of state-owned enterprises.
Monetary Policy: Relative Tightening and Lower Inflation
According to the IMF statement, the Central Bank of Syria has maintained a relatively tight monetary stance despite constraints. Combined with the halt in budget deficit financing, this has contributed to:
A marked slowdown in inflation, reaching low double-digit levels by the end of 2025. An improvement in the Syrian pound’s exchange rate against foreign currencies compared to 2024.With the introduction of a new currency, the IMF is focusing on:
Strengthening central bank independence. Establishing a modern monetary policy framework. Conducting a comprehensive assessment of bank soundness. Restructuring and rehabilitating the banking system.The statement emphasized that restoring public confidence in Syria’s banking sector is a prerequisite for the return of effective financial intermediation and for facilitating domestic and external payments.
Structural Reforms and Capacity Building Through 2030
Under a multi-year cooperation plan between the IMF and Syria, the two sides agreed on an expanded technical assistance program covering fiscal reforms between 2026 and 2030, focusing on:
Improving public financial management and cash management. Enhancing budget preparation and execution. Strengthening revenue mobilization and tax policy. Managing public debt and analyzing debt sustainability. Regulating natural resource revenue collection.In the financial sector, reforms include:
Drafting new financial legislation and regulations. Rehabilitating the payment system. Strengthening banking supervision. Supporting the design and implementation of a modern monetary policy framework.Efforts will also continue to improve economic statistics in Syria, including national accounts, price indices, balance of payments, government finance, and monetary statistics, in preparation for resuming Article IV consultations.
Financing and Debt Challenges
The IMF noted that continued international support will remain essential to reduce poverty, especially among returnees and internally displaced persons. However, Damascus’ ability to mobilize additional external financing is linked to progress in addressing its accumulated debt legacy.
Overall, the IMF mission’s statement paints a picture of a Syrian economy entering a transitional phase, marked by early signs of recovery driven by improved confidence and easing constraints. At the same time, it underscores the real test ahead: the government’s ability to consolidate financial stability, restructure the banking sector, and achieve sustainable growth that protects the most vulnerable groups.
According to the IMF, the coming phase will be decisive in transforming recovery indicators into a long-term path of institutional reform and economic stability.
Finance Minister: Positive and Encouraging
Syrian Finance Minister Mohammed Yosr Bernieh described the IMF statement as “positive and encouraging,” saying it follows intensive efforts to support the economic recovery path and reforms undertaken by Syrian authorities.
In a post on his personal Facebook page, Bernieh said the statement’s praise for the government’s commitment to sound economic policies and a robust, sustainable medium-term fiscal strategy “brings Syria one step closer to reintegration into the international economic system.”
According to the minister, the positive assessment will:
Enhance the confidence of international investors and financial institutions closely monitoring developments in Syria’s economic landscape. Open broader prospects for cooperation and support in the next phase.Bernieh affirmed the Ministry of Finance’s commitment to continuing the structural reforms necessary to strengthen economic and financial stability, support recovery, and lay the foundations for sustainable and inclusive growth.
Central Bank Governor: A New Phase of Organized Recovery
The Governor of the Central Bank of Syria, Abdulkader Husrieh, said in a Facebook post, “We look forward to working with the IMF on financial sector reforms and supporting the Central Bank of Syria’s 2025–2030 strategy through capacity-building programs focusing on:
New legislation and regulations for the financial sector. Rehabilitating the payment system and banking sector. Strengthening banking supervision. Supporting the preparation and implementation of a modern monetary policy framework. Developing economic and financial statistics to enable policymaking and resume Article IV consultations.”Husrieh said the IMF report carries a clear message that “Syria is entering a new phase of organized economic recovery, based on monetary stability, fiscal reform, institution-building, and gradual openness to regional and global economies.”
A team of IMF staff had visited Damascus between February 15 and 19, holding discussions with the Syrian government on recent economic and financial developments, progress in reforms, and the provision of further technical assistance activities, according to the Syrian Arab News Agency, SANA.
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