Measuring GDP Proves Difficult During Civil War in Syria

What happens to GDP and other economic data when a country is in civil war? Since the civil war in Syria began in 2011, measuring the country's wealth has become most challenging. The two key factors in measuring a country's wealth are population and GDP. Since the civil war began, the population has been significantly reduced. What was measured in 2010, at 20.7 million people, was reduced by 4.8 million fleeing the country. Approximately 7 million more fled their homes as domestic refugees. By 2014, the population is anywhere between 16 million and 18.8 million. Click HERE to read a good illustration of how measuring wealth of the war-torn Syria has become difficult for world trade institutions.

https://www.gfmag.com/topics/blogs/measuring-gdp-civil-war

Though Syria and the middle east are known for their oil exports, war and IDPs (internally displaced persons) have taken a toll on the economy.  From the report last updated in October of 2016, we see how many of the many of the middle eastern countries have been excepting or purposing taking funds from foreign entities including the U.S. to help support the growing refugee issue as well as the rebuilding of war torn areas.  This no doubt will have an impact on the areas exchange rate.  I know from personal experience when I was in Iraq in 2009, the Iraqi Dinar was far less of value than that of the U.S. dollar.  I could purchase 5250 Iraqi Dinar for only $5 American.  The situation at the time in Kuwait was considerably better as $5 American would only get you just over 3 Kuwaiti Dinar.  Needless to say, I passed on it.  At the time, Iraq was contemplating scraping their current currency since it was still heavily associated with the former dictator Suddam Hussain, and starting over.  Most of the primary concerns for these countries governments right now is to focus more on the macroeconomics of the country to help combat the issues that they face.  The main driving force for countries like Jordan and Lebanon are to keep schools and infrastructure operational and to help with the rising demand for everyday essentials due to the huge numbers that are flooding in holding refugee status.

Reference:

http://www.worldbank.org/en/country/syria/overview#2