Syrian economy booms

The Syrian economy may be classified as a low middle income economy with a GNP per capita of about US $1,200.

Until recently, the economy had been largely managed through a central planning system, but one which kept a role for the private sector particularly in agriculture, small industries, tourism and domestic trade. The public sector remained dominant in oil, banking, industry, construction and -- until recently -- foreign trade.

The present public to private sector mix is a result of a series of measures taken in the 1960's and 1970s. These measures began with the nationalization of banks, insurance companies, and large industries in the first half of the 1960's and followed in the second half of the sixties and during the 70's with the establishment of public sector monopolies in various fields. Land ownership was left in private hands, but a ceiling was fixed on individual land holdings.

Growth performance over the past 25 years varied. The economy achieved impressive growth rates in the seventies, but growth slowed down in the eighties, and picked up again in the first half of the nineties. The high growth rate achieved in the seventies, of about 10% per annum was made possible by a high investment rate of about 27%.

Investments were dominated by the public sector and supported by a large official capital inflow mainly from Gulf countries. Official net transfers to Syria amounted to US $2.1 billion in the 1973-76 period, and increased to US $7.0 billion in the subsequent five year period, 1977-1981.