Syria’s Economic Collapse: Market Volatility and Aid Cuts Leave Millions Struggling

Image Credit, NRC

The ongoing economic turbulence in Syria continues to undermine any meaningful recovery efforts, leaving millions of people struggling to survive amid a severe liquidity crisis, market instability, and dwindling purchasing power. Despite some recent improvements in trade policies and the reduction of certain business restrictions, the country’s economy remains fragile, particularly in sectors that would need to absorb workers in the event of large-scale returns of displaced Syrians.

A recent market assessment conducted by the Norwegian Refugee Council (NRC) highlights the grim reality faced by business owners in key regions, including Rural Damascus, Daraa, Aleppo, Homs, and Hama. Many reported a sharp decline in production and trade activity, citing an inability to invest and sustain commercial operations. While policies aimed at reducing transportation fees and favoritism in business dealings have led to a somewhat better flow of goods, the broader economic crisis continues to stifle recovery.

Federico Jachetti, NRC’s Syria Country Office Director, pointed to the widespread financial distress affecting ordinary Syrians. Despite marginal price reductions in recent months, purchasing power remains at rock-bottom levels. Families across the country report being unable to afford even basic necessities, making day-to-day survival a constant struggle. The economic crisis is compounded by severe fluctuations in exchange rates, leaving small business owners unable to restock products at stable prices.

The struggle is especially pronounced for those displaced by Syria’s ongoing crisis. Many people who have returned home or remain in camps have been hit hard by recent aid cuts, including reductions in food rations. While the cost of most food staples has declined over the past four months, the price of bread has skyrocketed, increasing eightfold in the past year following subsidy reductions. This has left families in a desperate situation, with many relying on remittances from relatives abroad or scavenging materials to survive.

For many Syrians, the current economic landscape offers little hope. Mohammed, an electrician from Aleppo trained and supported by NRC, noted how market volatility has made it difficult to maintain even the simplest business. The price of goods fluctuates so rapidly that selling a product today may not generate enough revenue to restock it tomorrow. Meanwhile, Mona, a mother living in a displacement camp in Idlib, described the bleak conditions her family faces as they struggle to prepare for Ramadan without sufficient food, heating, or shelter.

As international donors prepare for the upcoming Brussels Conference, NRC is urging the global community to take decisive action to support Syrians both within the country and in displacement camps. The organization stresses that recovery efforts must go beyond emergency aid and include long-term investment in job creation and infrastructure rehabilitation. Without such commitments, millions of Syrians will remain trapped in a cycle of poverty, with no realistic pathway toward rebuilding their lives.

The NRC continues to support displaced Syrians through vital services, including water trucking, shelter assistance, education, and legal aid. In addition, the organization provides training programs and business grants to help Syrians acquire skills and launch their own ventures. However, these initiatives alone are not enough to counteract the broader economic crisis, which requires urgent and sustained international intervention.

Without significant investment and policy shifts, the outlook for Syria remains bleak. Fourteen years into the crisis, the inability to stabilize local markets, restore civilian infrastructure, and generate employment opportunities threatens to keep millions in a permanent state of hardship. For Syrians struggling to put food on the table and keep their families warm, time is running out, and the world must act before the situation deteriorates even further.