Syria’s economy is poised for gradual improvement after the United States removed the country from its list of state sponsors of terrorism, ending a designation that had long blocked its reconnection to the global financial system. The move followed a 45-day congressional review.
The decision clears a major obstacle for a nation rebuilding after the collapse of the al-Assad regime in December 2024. Syria’s central bank reactivated its Federal Reserve account earlier in the year, and the World Bank approved a $100 million grant to modernise its financial sector.
Analysts described the change as significant momentum for recovery, while cautioning the benefits would be gradual. Nearly 90 percent of Syria’s population lives below the poverty line, underscoring the scale of the challenge ahead.
Sound governance and anti-corruption measures will be essential to rebuilding investor confidence, experts said, with international institutions still scrutinising Syria’s money-laundering safeguards and political stability.
For European policymakers weighing reconstruction and migration questions, Syria’s reopening could reshape the region’s economic and diplomatic landscape in the years ahead.
