Sudan country economic brief february 2011 the world bank africa region prem unit i. Sudan and south sudan after the independence of south sudan, and with conflict continuing in border areas, here is an overview of. Sudan country economic brief february 2011 the world bank. Sudan economic impact, inflation, total reliance of oil. Although most of the oil production capacity in those two countries is in south sudan, the country is landlocked and remains dependent on sudans export pipelines and port. Conflict in south sudan and the challenges ahead congressional research service summary south sudan, which separated from sudan in 2011 after almost 40 years of civil war, was drawn into a devastating new conflict in late 20, when a political dispute that overlapped with preexisting ethnic and political fault lines turned violent. The southern region overwhelmingly voted for secession, and in july 2011, south sudan became an independent nationstate that is separate from sudan, with juba and khartoum as. At independence in 2011, south sudan produced nearly threefourths of former sudans total oil output of nearly a half million barrels per day. The referendum was held in january 2011 and indicated overwhelming support for independence. Sudan is bordered by nine different countries and it is located along the red sea. Inflation and the depreciation of the south sudan pound continue to undermine household purchasing power. Through their trade passed down from generation to generation and a unique, longstanding, and evolving partnership with practical action, they have been able to forge through their social, economic and political adversity. Directors regretted, however, that large macroeconomic imbalances, exacerbated by. See world ank, south sudan economic rief, issue no.
The economy of sudan has boomed on the back of increases in oil production, high oil prices, and large inflows of foreign direct investment until the second half of 2002. Observing the 2011 referendum on the selfdetermination of. Brief overview of sudan economy and future prospects for agricultural development. Renewed conflicts in december 20 and july 2016 have undermined the development gains. It has a long history of civil wars as well as political and social instability. For instance, the social, economic and political costs of conflicts in sudan have. Sudan and south sudan have yet to fully implement security and economic agreements signed in september 2012 relating to the normalization of relations between the two countries. The secession of south sudan in july 9, 2011 translated into the loss of a sizeable portion of sudan s economic potential and a daunting challenge of adjusting to a permanent external and fiscal shock. Introduction there is no doubt that the civil war which took place in sudan casted a negative shadow over sudans economy over the years.
It is based on the information available at the time it was completed on september 7, 2012. South sudan s economy performed well in 2011 thanks to favourable oil prices, higher levels of donor support following independence, and a notable increase in foreign direct investment fdi, especially from east africa and china. Sudan economic impact, inflation, total reliance of oil, privatization, federal system, peace agreement, economic embargo, foreign debts, separation. Following the separation of south sudan in 2011, the government announced its intention to create an islamic, arabic state. Sudan global economic prospects examines trends for the world economy and how they affect developing countries.
South sudan is one of the poorest countries in the world. Economic indicators for sudan including actual values, historical data charts, an economic calendar, timeseries statistics, business news, long term forecasts and shortterm predictions for sudan economy. However, the secession of south sudan significantly affected sudan s economy because it lost 75% of its oil production fields to south sudan. Sudan african economic outlook 2017 economic growth slowed in 2016 to an estimated 3% as a result of the decline in oil production and macroeconomic imbalances and is projected at 3. Browse additional economic indicators and data sets, selected by global finance editors, to learn more about sudan. Conference on least developed countries in may 2011 coincided, in less than two months later, with southern states of sudan seceded to form the republic of south sudan in july 2011. Postponing the referendum may be a pragmatic strategy to strengthening wealth sharing agreements and the multiple ongoing peace processes in sudan beyond 2011.
Assembly ratified a transitional constitution shortly before independence in july 2011. Institutions and the human resource base remain weak. For nearly a decade, the economy boomed on the back of rising oil production, high oil prices, and significant. For this purpose the data were collected from various sources, and we used descriptive.
Under the terms of a peace agreement in 2005, its southern states seceded, forming the republic of south sudan in 2011. The construction and building materials industries in sudan. Sudan real gross domestic product gdp is expected to grow modestly in 2012 and 20 owing mainly to the loss of oil revenue and population following the secession of south sudan in july 2011. Global finance magazine sudan gdp and economic data. The causes of sudans recent economic decline iosr journal. Government of national unity, which between 2005 and 2011 provided a percentage of leadership posts to the southern sudan based sudan peoples liberation movement splm. Learn more about the sudan economy, including the population of sudan, gdp, facts, trade, business, inflation and other data and analysis on its economy from the index of economic freedom. Sudan economy, politics and gdp growth summary the. Currently the region supports 1020 million head of cattle.
In january 2011, a referendum in the south, stipulated by the comprehensive. The secession of south sudan induced multiple economic shocks. South sudan is a landlocked country with an area of 664, 329 km2 with savannah grassland and arable woodland in the centrenorth and south east r osati 2011. With international pressure, in 2005, a comprehensive peace agreement cpa was signed by the sudan peoples liberation army splma and khartoum. The republic of south sudan became the worlds newest nation and africas 55th country on july 9, 2011. Peace, security, and stability are the most pressing challenges for south sudan. It reached only about 125,000 bpd after the independence of south sudan in 2011, putting an end to the boom years because around 75% of oil and production was coming from oilfields in the present republic of south sudan, while 90% of pipelines and export facilities are in north sudan. Sudan exports in product space framework, 19912011. While the january 2011 referendum was a credible representation of the will of southern sudanese, it is. This study attempts to examine the effect of inflation on economic performance measured by gdp in sudan.
However, its lack of implementation has sparked conflict in the oilrich abyei, south. Oil was sudan s main export, with production increasing dramatically during the late 2000s, in the years before south sudan gained independence in july 2011. This page has economic forecasts for sudan including a longterm outlook for the next decades, plus mediumterm expectations for the next four quarters and shortterm market predictions for the next release affecting the sudan economy. South sudan economic outlook african development bank.
Gdp per capita for 2011 is estimated to 1,822 usd, somewhat below sudan, but more than double the level of neighbouring kenya and almost. Africa sudan the world factbook central intelligence. South sudan faced serious economic challenges in 2017. The theme for the 2011 budget is ensuring smooth transition to independence. Rising levels of public expenditures have translated into an almost corresponding increase in the demand for imported goods. South sudan may extend financing to support commercial banks that may experience temporary liquidity challenges subject to section 54 of the banks act 2011. South sudan economic update public disclosure authorized. The economy of south sudan is one of the worlds weakest and most underdeveloped. Country report 2017 includes sudan real gross domestic product growth rate, with latest forecasts and historical data, gdp per capita, gdp composition and breakdown by sector. South sudan holds one of the richest agricultural areas in africa, with fertile soils and abundant water supplies. Authorities are planning for fiscal challenges of secession with secession of the south on july 9, 2011, large oil revenue losses and a significant fiscal. Sudan share of economic sectors in the gross domestic. The economy of south sudan has been experiencing high inflation since its independence in 2011, averaging 50 per cent per year.
The most important and immediate shock was the loss of the oil revenue that accounted for more than half of sudan s government revenue and 95% of its exports. Most recently, sudan has been in the news because south sudan seceded from sudan on july 9, 2011. Sudan country economic brief july 2011 the world bank. Overview south sudan gained independence from sudan in july 2011. This trend has worsened in recent years, as a consequence of the economic and political crisis. Most villages in the country have no electricity or running water. Access the latest politics analysis and economic growth summary through 2011 for sudan from the economist intelligence unit sudan economy, politics and gdp growth summary. Pdf fiscal policy and economic growth in sudan researchgate. Transitional constitution of the republic of south sudan, 2011.
According to imf and wb projections, oil production is expected to remain between 46. Recent political developments the selfdetermination referendum was held on schedule during january 915, 2011 with overwhelming results in favor of secession for the south were finalized on february 7, 2011. Major challenges facing the south sudan economy african. However, since the cpa, sudans political and economic situation has. The report includes countryspecific threeyear forecasts for major macroeconomic indicators, including commodity and financial markets. Fiscal policy and economic growth in sudan, 19962011. It remains unclear how south sudan will finance the budget, given its struggling economy amidst the everrising inflation and conflict. With rising oil revenues, the sudanese economy was booming, with a growth rate of about nine percent in 2007. The territorial boundaries of abyei remain contested and could reignite hostilities between affected people on both sides, with dire social, security, and economic consequences.
National and regional implications of agricultural efficiency improvement in sudan. June 2, 2016 with the officials of sudan on economic developments and policies. The secession of south sudan induced multiple economic shocks according to. South sudans cabinet approved the general budget for fiscal year 201819, which increased by about 60 percent to reach 584 million usd up from 366 million usd in fy1718. According to this document, gdp growth declined from 5% in 2010 to 2. South sudan has little existing infrastructure and has the highest maternal mortality and female illiteracy rates in the world as of 2011. In 2018, the share of agriculture in sudan s gross domestic product was 31. Selected issues paper this selected issues paper on sudan was prepared by a staff team of the international monetary fund as background documentation for the periodic consultation with the member country. The republic of south sudan became the worlds newest nation on july 9, 2011, and joined the world bank group as its newest member in spring 2012.
South sudan got her independence on july 9th, 2011. Pdf brief overview of sudan economy and future prospects. It borders central africa republic, democratic republic of congo, ethiopia, kenya, uganda, and sudan. The government of sudan has attempted to address heightened economic and social challenges through the introduction of austerity measures. Jan 23, 2020 this statistic shows the share of economic sectors in the gross domestic product gdp in sudan from 2008 to 2018. However, economic growth has recently been severely constrained by the con. Pdf brief overview of sudan economy and future prospects for. This page provides the latest reported value for sudan inflation rate plus previous releases, historical high and low, shortterm forecast and longterm. The bank encourages commercial banks to trade among themselves before invoking the central banks window of last resort. Gdp growth registered more than 10% per year in 2006 and 2007. At independence in 2011, south sudan produced nearly threefourths of former sudan s total oil. Sudan country economic brief december 2011 siteresources. The sudan country programming framework cpf is coowned by fao and the government of sudan, though its ministries of agriculture and irrigation.
In the context of the 2012 article iv consultation with sudan, the following documents have been released and are included in this package. Assistant professor, department of economics, university. The oil sector had driven much of sudans gdp growth since 1999. Access sudans economy facts, statistics, project information, development research from experts and latest news. Learn how the world bank group is helping countries with covid19 coronavirus. Sudan country economic memorandum realizing the potential for. Access the latest politics analysis and economic growth summary through 2011 for sudan from the economist intelligence unit sudan economy, politics and gdp growth summary the economist intelligence unit. Jan 17, 2020 it is also the tenth largest country in the world based on area.
Economy profile of sudan doing business 2020 indicators in order of appearance in the document starting a business procedures, time, cost and paidin minimum capital to start a limited liability company dealing with construction permits procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety. Speech of the minister of finance and national economy to the national assembly, january 2011. Inflation and monetary policy the economy of south sudan has been experiencing high inflation since its independence in 2011, averaging 50 per cent per year. Low oil revenue, weak nonoil revenue mobilization, and increasing securityrelated expenditure caused the deficit to rise rapidly.
Perspectives on the political economy of south sudan african. As a consequence of war and conflicts, the regions of southern sudan and darfur need more developmental programs and further attention. This ended the civil war and allowed for a referendum and eventual south sudanese independence in 2011. Economic analysts say that the refinery is part of governments strategy to make up for lost oil revenue after the south sudan split of 2011. Sudan has experienced protracted social conflict, civil war, and, in july 2011, the loss of threequarters of its oil production due to the secession of south sudan. Goss has presented a 2011 budget to the southern sudan legislative assembly, however, revisions to reflect new postcpa arrangement can be expected midyear.
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