In a statement released Monday, July 7, the World Bank noted that the easing of sanctions offers some positive potential, but overall progress remains limited.  It clarified that frozen assets and restricted access to international banking services continue to hinder energy supplies, foreign aid and humanitarian support, trade, and investment.  The statement reviewed Syria’s recent economic trajectory amid ongoing political shifts and continued instability in the country.  It highlighted the severe erosion of Syria’s economic base, chronic fiscal pressures, the deep impact of sanctions, conflict-related disruptions, and the rise of informal and illicit economic activities since the beginning of the Syrian conflict in 2011.  The 14-year-long conflict has severely damaged Syria’s economy, with GDP shrinking cumulatively by over 50% since 2010. Gross national income per capita dropped to just $830 in 2024—well below the international threshold for low-income countries, according to the statement.  Extreme poverty now affects one in every four Syrians, while two-thirds of the population live below the poverty line for lower-middle-income countries.   Jean-Christophe Carret, the World Bank’s Regional Director for the Middle East, said that economic data on Syria is extremely scarce and difficult to obtain.  He emphasized that this macroeconomic and fiscal assessment helps fill a critical information gap and provides a solid foundation for policy dialogue aimed at reviving economic growth and achieving prosperity in Syria.  The statement also highlighted recent steps taken by the new government to unify macroeconomic, fiscal, and monetary policies, with a focus on good governance, sound public financial management, and monetary administration.  Efforts are also underway to attract international investment and secure global support commitments for rebuilding the Syrian economy.    On June 25, the World Bank announced it had approved a $146 million grant to help Syria restore reliable and affordable electricity and support the country’s economic recovery.  In a statement, the Bank said that its Board of Executive Directors approved the financing grant for Syria through the International Development Association (IDA), under the “Syria Emergency Electricity Project” (SEEP).  The project aims to rehabilitate damaged transmission lines and substations, and to provide technical assistance to support the development of the electricity sector and strengthen institutional capacity.  Jean-Christophe Carret, the World Bank’s Director for the Middle East, noted that among Syria’s urgent reconstruction needs, rehabilitating the electricity sector has emerged as a critical investment. It is expected to improve living conditions for Syrians, support the return of refugees and internally displaced persons, enable the resumption of other services such as water and healthcare, and help drive economic recovery.  He added that the “Syria Emergency Electricity Project” represents the first step in the World Bank’s plan to scale up support for Syria on its path toward recovery and development. (ICE BEIRUT)

Fonte notizia: Enab Baladi