Damascus: The World Bank said on Monday that Syria's gross domestic product (GDP) is expected to grow modestly by 1 percent in 2025, following a contraction of 1.5 percent in 2024.

According to Qatar News Agency, the easing of sanctions provides some upside potential; however, progress remains limited as frozen assets and restricted access to international banking continue to hinder energy supply, foreign assistance, humanitarian support, and trade and investment. The World Bank highlighted these challenges in a statement issued today.

Syrian Finance Minister Mohammed Yusr Barnieh emphasized the significance of lifting sanctions as a major and important step that will positively impact the Syrian economy. Similarly, Governor of the Central Bank of Syria Abdulqadir Al Hasriya described the situation as a historic opportunity to enhance transparency and governance of financial institutions, aiming to integrate the Syrian financial system into the international financial system.

In a move to support Syria's economic recovery, the World Bank approved a USD 146 million grant on June 25 to improve electricity supplies in the country. Further, the executive order issued by US President Donald Trump on June 30 converted the temporary freeze on sanctions into a permanent lifting, ending the national emergency with respect to Syria that had been in place since 2004. This order had imposed comprehensive sanctions on Syria, affecting most state-run institutions, including the central bank.