Washington, August 04 (QNA) - The International Monetary Fund (IMF) said the Syrian economy continues to show increasing signs of recovery, forecasting economic growth of more than 10% this year.

In a statement issued today following a visit by an IMF staff team to Damascus, the Fund projected that Syria's strong growth would continue in 2027, supported by improved performance in the productive and services sectors and the continued implementation of economic reforms.

The IMF said the Syrian economy began to recover in 2025, driven by improved consumer and investor confidence, the return of around 1.5 million refugees, and Syria's gradual reintegration into the regional and global economies, which helped offset the effects of the drought that had impacted the agricultural sector.

The statement added that Syria's public finances had improved significantly, with the central government budget recording a modest surplus in 2025. It projected higher revenues in 2026 due to increased tax and customs receipts, higher hydrocarbon sector revenues, and exceptional revenue sources, including telecommunications licensing fees and fuel transit charges.

The IMF noted that inflation rose during 2026 due to external factors, most notably higher import prices, particularly for fuel and food, as well as stronger domestic demand and higher costs for some services.

It stressed the importance of continuing to strengthen public financial management, mobilize revenues, accelerate the rehabilitation of the banking sector and the modernization of its regulatory framework, enhance anti-money laundering and counter-terrorism financing frameworks, and improve the quality of economic statistics. (QNA)