Sudan's economic growth to slow in 2013

08 October 2013

Sudan faces risk of instability in run-up to 2015 presidential election, says IMF

Sudan’s non-oil gross domestic product (GDP) growth is predicted to slow to 2.3 per cent in 2013, according to the Washington-headquartered IMF’s latest assessment of the African country.

By the end of 2012, GDP growth slowed to 4.6 per cent and inflation rose to 44.4 per cent by the end of the year.

The fund found that although inflation would ease in the coming year, it would remain in double-digits. At the end of August, year-on-year inflation stood at 22.9 per cent.

The IMF’s report, which was concluded at the end of September, warns the country’s economy faces “significant risks”, with the main risk being the potential instability in the run-up to the 2015 presidential election, as well as regional civil conflicts.

Sudan’s economy has suffered due to the fall in oil revenues following the split from oil-producing South Sudan in 2011.  

The IMF made several recommendations to put Sudan’s economy back on track. These include phasing out subsidies and increasing tax revenues. Sudan’s government will also need to work with South Sudan to reach agreements with creditors on it large external debt obligations.

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