Syrian Arab Republic - 2005 Article IV Consultation - Staff Report; And Public Information Notice on the Executive Board Discussion (Electronic book text)

1. Global political and economic ties have been strengthened in recent years. Relations with the EU have improved recently following the establishment of diplomatic relations with Lebanon. Subsequently, France, which currently chairs the EU, issued positive signals regarding the ratification of the association agreement with Syria. However, the large number of Iraqi refugees in Syria continues to pose economic and social challenges. While their presence has contributed to growth, the refugees have put a strain on public expenditures for petroleum and food subsidies, education, health, and utilities. As the refugees run down their savings, they may seek work and add pressure to the labor market.