Damascus recently witnessed important economic discussions bringing together Mr. Shuqair with the head of the Lebanese-Syrian Joint Business Council, aimed at discussing ways to enhance and expand prospects for economic and trade cooperation between the two sisterly countries. These meetings come as part of diligent efforts to activate bilateral relations, seek common solutions to economic challenges, and open new channels that serve the interests of both peoples. This analysis focuses on the economic dimensions of these discussions and how they can positively impact the Syrian citizen and the value of the Syrian Pound.
The Importance of Syrian-Lebanese Economic Relations
The economic relationship between Syria and Lebanon has always been a vital artery for both countries, due to geographical proximity and historical and cultural ties. Lebanon is viewed as an important gateway for Syrian products to foreign markets, and an outlet for importing many essential goods. With increasing interest in revitalizing bilateral trade, these discussions are expected to contribute to facilitating the movement of goods and capital, which will benefit the Syrian economy as it strives to recover. These steps can be a driver for propelling growth in multiple vital sectors.
Direct impact on trade and price stability
Enhancing economic cooperation necessarily means simplifying customs and logistical procedures, which could lead to an increase in the volume of trade exchange. The Syrian market is expected to witness a greater influx of Lebanese goods, and perhaps other goods passing through Lebanese ports, which will increase supply and contribute to the stability of prices for some essential materials that suffer from significant fluctuations. For example, if imports of some food or industrial materials increase by 15%, their prices in markets of cities like Damascus and Aleppo are likely to decrease by 5% to 10%, which would alleviate the burden on Syrian families. Furthermore, facilitating Syria's exports of agricultural and industrial products, such as citrus from Tartous and Latakia, or textiles from Aleppo, will bring hard currency into the country, thereby strengthening the value of the Syrian Pound.
Job opportunities and stimulating production sectors
The impact of these discussions is not limited to direct trade; it also extends to include job opportunities and stimulate various production sectors. As trade movement increases, the need for labor in the transport, logistics, and customs clearance sectors at border crossings such as Jdeidat Yabous crossing is likely to rise. Moreover, the ease of export will encourage factories and plants in industrial cities, such as Hassia in Homs and Sheikh Najjar in Aleppo, to increase their production to meet external demand, thereby creating new jobs and reducing unemployment rates. According to reports, every 10% increase in exports can contribute to providing thousands of new job opportunities in associated sectors.
Impacts on the livelihood of the Syrian citizen
At the core of any economic initiative, the Syrian citizen remains the primary beneficiary or the most significantly impacted. Price stability and the availability of diverse goods mean a direct improvement in the purchasing power of the Syrian Pound. For example, if the average family spending on food represents 60% of its income, a 5% decrease in prices means saving a portion of income that can be used to meet other needs or for saving. This improvement, though gradual, instills hope in citizens and contributes to improving their daily quality of life, away from inflationary pressures and the challenges of securing basic necessities.
Future Prospects for the Syrian Economy
These discussions open the door to broader horizons for future cooperation, which may include joint investment in infrastructure or industrial projects, and the exchange of technical expertise. This rapprochement is likely to attract Lebanese investments in specific sectors within Syria, supporting reconstruction and development efforts. The challenge remains in translating these discussions into clear working mechanisms and concrete implementation plans that ensure the sustainability of cooperation and achieve the maximum possible benefit for the Syrian economy and its citizens, and enhance their confidence in a better future for the Syrian Pound.
