Syrian economist outlines priorities for economic recovery

DAMASCUS, Syria — A Syrian economist has called for a comprehensive recovery plan to address what he described as accumulated structural problems facing the country's economy, including low production, high energy costs, rising operating expenses and eroding purchasing power. Muhammad Hallaj, head of the Economics Sciences Association at the Damascus Chamber of Commerce, said the International Monetary Fund's growth forecasts for Syria remain optimistic despite the challenges. Hallaj said private investment projects tied to reconstruction are expected to become more visible by the end of this year and early next year. He argued that recovery should be measured not only by investment volume but also by income levels, purchasing power and sales volumes. Falling sales and rising competition are a natural part of an economic opening, he said, as large quantities of goods and services enter the market and local sectors demonstrate their production capacity. Raising purchasing power should be a government priority, Hallaj said, through tax, fee and burden reductions, support for strategic products or wage increases. He cautioned that wage increases alone would not solve the problem, noting that the private sector's capacity to align with public-sector salaries is limited, and that pay rises must move in tandem with production growth to avoid rekindling inflation. Hallaj also said energy prices are feeding into the final cost of goods through transportation, distribution and freight. Imports alone cannot drive the economy, he said, and industry and exports must be supported. He called for customs, business, trade, consumer protection, social security, labor and central bank laws to be reviewed holistically and for stronger coordination between institutions.