Syria 'suffering less' from global economic crisis

ECONOMIC VIEW: Syrian Prime Minister Mohammed Naji Otri. (AFP)

The Syrian economy grew 6.5 percent in 2007 and 2008, showing that the government's policies were effective, newspapers quoted Prime Minister Mohammed Naji Otri as saying.

"Certain economic indicators reflect the correctness of our plans. GDP registered 6.5 percent growth in 2007 and 2008. These figures inspire optimism and show we are on the right track," he reportedly told a meeting of engineers, without giving a breakdown of the figure.

Syria is suffering less than other countries from the global economic crisis, although it will lead to a fall in exports and in remittances home from expatriate workers, he said.

Otri said banks operating in Syria have assets of 700 billion Syrian pounds ($14 billion) and the government is looking at ways of investing the money in major development projects.

"We are going to confront the global financial crisis by doing more construction," he said.

The premier pledged to support the public sector and deal with its problems.

"No public sector worker will be dismissed," Otri said, noting: "200,000 new workers join the labour market each year" and population growth is accelerating.

Major investment projects to be launched early next year include the creation of 180 hectares (400 acres) of farmland at Hassake in the northeast and a project to transfer water from the Euphrates to central Syria to enable the creation of petrochemical industries, he said.

An economy ministry study published last month forecast that the credit crunch would cause a 30 percent drop in foreign investment in Syria this year and a fall in remittances from Syrians working abroad, worth $850 million in 2008.

Syria has launched a major reform policy granting the private sector a bigger role in the economy including setting up a stock exchange, where dealing began earlier this month.

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