Syria's economy has undergone a profound transformation since the 1960s. Agriculture is still a leading sector of the economy and a main source of employment, though its share of gross domestic product has declined relatively as Syria has industrialized. Less than one third of the country is cultivated because of aridity and poor soils. The most common crops are wheat and barley. Extreme fluctuations in grain production from year to year because of rainfall variability have traditionally caused much hardship for the rural population. Cotton is the chief cash crop and was Syria's leading export until the mid-1970s. Other leading crops include vegetables, citrus fruits, olives, tobacco, and sugar beets. Sheep and goats are grazed in many areas. In the driest environments nomadism is common, though this way of life is declining and is practiced by very few Syrians today.

Many of Syria's industries are agrarian based--such as food processing and textiles. In the mid-1960s the government began a policy of rapid industrialization, especially in the areas of iron and steel and other heavy industries. Factories now turn out a wide range of products, including tractors and television sets. Rapid industrial growth has encouraged many Syrians to move to cities.

Syria is not a major petroleum producer by Middle East standards. Nevertheless, petroleum accounts for some 40 percent of total exports, and a petrochemical industry has developed around the main refineries. A major oilfield was discovered in the Deir-ez-Zor region in the mid-1980s. Syria also has large phosphate deposits, which are used in its growing fertilizer industry. Syrian development has given a high priority to building a good transportation system, the absence of which hindered the country's economic growth in the past. Modern ports have been developed at Latakia and Tartus, with the result that Syria no longer needs to trade through Beirut in Lebanon. Major cities are now all linked by modern highways or by an extensive railway network.