Banking expert Amer Shahda’s analysis of the draft general budget for 2025 reveals both familiar patterns and promising developments. While the budget remains consistent with previous years, a notable 5% increase in investment spending stands out as a positive sign.
Shahda emphasizes the government’s acknowledgment of economic uncertainties, reflected in the budget’s measures such as doubling oil derivative subsidies to four billion pounds. Despite aiming to reduce the deficit by 21%, Shahda expresses doubt about achieving this goal due to potential inflation risks arising from economic transitions.
As the budget unfolds, Shahda anticipates challenges in managing inflation’s impact on spending. He stresses the necessity of aligning monetary policy with investment objectives, emphasizing the importance of coordination between fiscal and monetary policies.
Shahda underscores the need for sustainable funding sources to support economic growth and maintain stability. Unanswered questions about support for small businesses, social aid, and the implications of refugee movements remain critical issues for the 2025 budget.
This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.