In-Depth Analysis
Sudan
Sudan’s transitional civilian government continues to grapple with the reforms necessary to turn its economy around after 30 years of dictatorial rule. Immediate challenges include reining in the fiscal deficit, stabilising inflation, and normalising diplomatic relations, by removing Sudan’s designation as a state sponsor of terrorism.
Weakened by years of mismanagement and last year’s revolution, the economy is very vulnerable to shocks relating to Covid-19. The coronavirus is disrupting international supply chains, weakening global demand, and deterring investment to high-risk countries, like Sudan. High inflation, liquidity shortages, fuel restrictions, and large external and fiscal imbalances continue unabated and deter economic reform and development efforts. While the success of the recent Sudanese Partnership Conference should boost the government’s capacity for countercyclical fiscal policy, increase the supply of forex reserves, and bolster private sector financing, it is not expected to improve economic conditions in the short run. Overall, real GDP is forecast to decline by 12.7% in 2020; the worst contraction since independence in 1956. (Source: Sudan Quarterly Update, published July 2020)
Macroeconomic Data
(2019)
|
Fiscal Balance (as a % of GDP) |
-1.7 |
|
Consumer Price Index (% change y-o-y, avg) |
51.0 |
|
Current Account Balance (as a % of GDP) |
-18.2 |
|
Real GDP (annual % change) |
-2.5 |
|
GDP per Capita, US$ |
638.4 |
|
Import Cover (months) |
0 |
|
Population, million |
42.8 |
| Total External Debt (as a % of GDP) |
206 |