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The Syrian government faces significant challenges in revitalizing the economy and restoring investor confidence amid the repercussions of war, sanctions, and limited resources. Despite its efforts to adopt pragmatic policies based on accepting concessionary loans rather than relying on external financing, sanctions continue to play a major role in hindering growth, with public revenues declining to less than $2 billion in 2025 compared to $12 billion in 2010. The main challenges revolve around governance deficits and institution-building, marked by rising inflation and a deteriorating currency exchange rate. Experts emphasize the need to implement reforms in the agriculture and energy sectors and improve the investment climate to ensure sustainable economic growth that balances poverty reduction and supports the most vulnerable populations.
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