Economy of Syria

The economy of Syria is based on agriculture, oil, industry and services. Its GDP per capita expanded 80% in the 1960s reaching a peak of 336% of total growth during the 1970s.^{[citation needed]} This proved unsustainable for Syria and the economy shrank by 33% during the 1980s. However the GDP per capita registered a very modest total growth of 12% (1.1% per year on average) during the 1990s due to successful diversification. More recently, the International Monetary Fund (IMF) projected real GDP growth at 3.9% in 2009 from close to 6% in 2008. The two main pillars of the Syrian economy used to be agriculture and oil, which together accounted for about one-half of GDP. Agriculture, for instance, accounted for about 25% of GDP and employed 25% of the total labor force. However, poor climatic conditions and severe drought badly affected the agricultural sector, thus reducing its share in the economy to about 17% of 2008 GDP, down from 20.4% in 2007, according to preliminary data from the Central Bureau of Statistics. On the other hand, higher crude oil prices countered declining oil production and led to higher budgetary and export receipts.^[7]

Since the out break of the Syrian civil war, the Syrian economy has been hit by massive economic sanctions restricting trade with the Arab League,^[8] Australia,^[9] Canada,^[10] the European Union,^[11] (as well as the European countries ofAlbania,^[12] Croatia,^[12] Iceland,^[12] Liechtenstein,^[12] Macedonia,^[12] Moldova,^[12] Montenegro,^[12] Norway,^[13] Serbia,^[12] andSwitzerland)^[14] Georgia,^[12] Japan,^[15] Turkey,^[16] and the United States.^[17] These sanctions and the instability associated with the civil war have reversed previous growth in the Syrian economy to a state of decline for the years 2011 and 2012.^[18]

Crude oil futures tumble after Syria accepts Russian proposal

Investing.com - Crude oil futures tumbled on Tuesday, after Syria’s foreign minister said Syria will accept Russia’s proposal to put chemical weapons under international control.

On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD107.60 a barrel during U.S. morning trade, down 1.75%.

New York-traded oil futures held in a range between USD107.56 a barrel, the daily low and a session high of USD109.01 a barrel. The October contract settled 0.9% lower at USD109.52 a barrel on Monday.

Oil futures were likely to find support at USD106.55 a barrel, the low from September 3 and resistance at USD110.70 a barrel, the high from September 6.

Oil prices tumbled after Syrian Foreign Minister Walid al-Moallem said that his country will agree to turn over its chemical weapons to international control, easing concerns over a U.S. military strike against Syria.

U.S. President Barack Obama said Monday that he would put plans for a military strike against Syria on hold if the country agrees to a Russian proposal to place its chemical weapons under international control.

While Syria is not a major oil producer, investors fear that the two-year-old civil war could spill over to affect oil supplies in nearby countries.

Oil prices surged to a 27-month high of USD112.22 a barrel on August 28 amid indications the U.S. was close to taking military action against Bashar al-Assad’s government.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery dropped 1.6% to trade at USD111.89 a barrel, with the spread between the Brent and crude contracts standing at USD4.29 a barrel.

London-traded Brent prices fell to a session low of USD111.86 a barrel earlier, the weakest level since August 27.

Gold slightly lower on increased risk appetite

Investing.com - Gold futures traded slightly lower in the early part of Tuesday’s Asian session due to increased appetite for riskier asset following a stellar day for U.S. equities.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery inched down 0.08% to USD1,385.60 per troy ounce in Asian trading Tuesday. The December contract settled up 0.01% at USD1,386.70 per ounce on Monday.

Gold futures were likely to find support at USD1,361.80 a troy ounce, Friday's low, and resistance at USD1,416.30, Tuesday's high.

Following a spate of bullish Asian economic data points released over the weekend and during Monday’s Asian session, U.S. stocks raced higher Monday with the benchmark S&P 500 index surging 1%.

Through the first five trading days of this month, U.S. stocks have betrayed September’s reputation for being the worst month of the year in which to be long equities. Bullish moves in stocks has erased some of gold’s luster due to the yellow metal’s safe-haven status.

Last Friday, U.S. jobs data fueled speculation that the Federal Reserve may hold off announcing plans to begin winding down its USD85 billion in monthly bond purchases at its Sept. 17-18 policy meeting, though by Monday, many investors backtracked on that opinion, betting that the Fed remains on course to begin scaling back its asset purchases this month even if just by a little.

Some market observers have said the Fed will not formally announce tapering if the U.S. is engaged in military operations against Syria at the time of the FOMC meeting.

Elsewhere, Comex silver for December delivery fell 0.06% to USD23.703 per ounce while copper for December delivery inched down 0.01% to USD3.280.

Assad threatens 'repercussions' if US launches strike on Syria

yrian President Bashar Assad, during an interview that aired Monday morning, threatened "repercussions" from any American attack on Syria. 
The Syrian leader, speaking with CBS News, said the U.S. can expect "every action" if America strikes. He suggested retaliation could come from the opposition, as well as his own government and its allies.
"You should expect everything," Assad said. Asked to elaborate, he added: "You should expect everything. Not necessarily from the government. ... You have different parties, you have different factions, you have different ideology."
Asked specifically if the attack could trigger more chemical warfare, Assad suggested the rebels would be the ones who would use them. He said that outcome depends on whether "terrorist" rebels possess those weapons, adding: "It could happen."
Assad used the interview to challenge the Obama administration's claims that his regime used chemical weapons in an attack that killed hundreds on Aug. 21. He said his soldiers were "in another area" at the time of the attack.
It comes as President Obama prepares to deliver a national address on Tuesday making his case for a military strike on Syria. The matter is currently before Congress, which will begin a set of votes this week on a resolution authorizing the use of force.
Obama on Monday also planned to make his case, in a string of interviews, for punishing Assad.
Top administration officials are heading to Capitol Hill for more classified briefings. And White House national security adviser Susan Rice is scheduled for a speech at a Washington think tank timed to the public relations blitz aimed at ensuring people the administration isn't contemplating another commitment like Iraq and Afghanistan.
In an interview Sunday in Damascus, Assad told American journalist Charlie Rose there is no conclusive evidence about who is to blame for the chemical weapons attacks and again suggested the rebels were responsible. Rose said Assad also warned him previous U.S. military efforts in the region have proved disastrous.
And Assad argued the evidence Secretary of State John Kerry has disclosed amounts to a "big lie" that resembles the case for war in Iraq that Secretary of State Colin Powell made to the United Nations over a decade ago.
Appearing Monday at a news conference in London with British Foreign Secretary William Hague, Kerry said of Assad: "What does he offer? Words that are contradicted by fact."
"We know that his regime gave orders to prepare for a chemical attack. We know they deployed forces," the secretary said. He added that the United States knows "where the rockets came from and where they landed ... and it was no accident that they all came from regime-controlled territory and all landed" in opposition-held territory.
"So the evidence is powerful and the question for all of us is: What are we going to do about it? Turn our backs? Have a moment of silence?"
He said that if Assad wanted to defuse the crisis, "he could turn every single bit of his chemical weapons over to the international community" within a week. But he said that Assad "isn't about to do it."