(MENAFN) A recent report issued by the Institute of International Finance (IIF) expected Syria's economy to contract further by 15 percent this year, after it shrunk by 20 percent last year, Arabian Business reported.
The IIF said its expectations were based on the ongoing civil war ravaging the country, paralyzing industries and ousting much needed foreign investments, while international sanctions suffocate exports.
The report said Syria's gross domestic product (GDP) is expected to shrink to USD27 billion this year from USD57.5 billion in 2010 prior to the revolt against the Syrian President Baqshar Al Assad, as tourism revenues tumble and foreign direct investments (FDI) dry up.
The country's fiscal deficit is also expected to expand by 13 percent of GDP in 2013 compared with 16.3 percent last year, as the government spends more while tax revenue and oil receipts decline, the IIF said.
As for Syria's foreign currency reserves, IIF says they will drop USD2.1 billion, enough to cover one month of imports, compared with USD5.6 billion in December 2012.
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