UNITED NATIONS, June 16 (Xinhua) -- UN Special Envoy for Syria Geir Pedersen on Tuesday sounded the alarm over the dramatic collapse in economic conditions throughout the country.
The Syrian lira is losing value and the inflation rate has hit peak levels in the past six months, he told a virtual meeting of the Security Council.
The economic crisis is hitting every part of Syria, regardless of territorial control. Medicine is more expensive and scarce. Food prices have skyrocketed and supply chains have been disrupted. The purchasing power of ordinary Syrians has seriously diminished as wages -- both private and public sector -- are vastly inadequate to meet the demands of the day, he said.
Before this recent deterioration, over 80 percent of Syrians were estimated to be living below the poverty line. The situation is more severe today, and the intensity of that poverty is likely more acute. The World Food Programme now estimates that some 9.3 million people are food insecure, with over 2 million more at risk, he said.
Syrian women, the primary breadwinners in many families, are disproportionately affected, forced to shoulder care-taking responsibilities while financially supporting the household. Many women, including those in refugee communities, are facing higher risks of exploitation and abuse as they struggle to provide for the day-to-day needs of their families, said Pedersen.
He saw fears of Syrians, even panic in some quarters in recent weeks.
"We have heard of shops and pharmacies forced to close, unable to cope with the recent volatility; of jobs being lost; of remittances drying up. In some areas of northwest Syria, reports have emerged of locals increasingly using foreign currencies."
The decade-long conflict in Syria has wrought destruction on Syria's people, its environment, its infrastructure and the very fabric of its society -- the bonds of trust that underpin any economy. Syria's economic governance has also been characterized by recurrent fiscal and monetary mismanagement and corruption, he said.
In recent months, new factors have joined these underlying structural problems, pushing the economy to the brink. The banking crisis in neighboring Lebanon has had a significant impact. The repercussions all societies and economies have experienced from measures to combat the COVID-19 pandemic have also played their part.
Another factor in this context is significant sanctions by the United States and the European Union. These target individuals and entities affiliated with the government, and also restrict activity in the financial, banking, oil and gas and military sectors as well as exports and multilateral lending to and investments in Syria, he said.
Further U.S. secondary sanctions, aimed at deterring foreign business activity with the Syrian government, will begin entering into force as early as Wednesday, he noted. Enditem
