Sudan’s 2019 Budget Keeps Subsidies, Fights Corruption

Customers look on as a vender displays fresh produce in Khartoum, Sudan December 2, 2016. REUTERS/Mohamed Nureldin Abdallah
Customers look on as a vender displays fresh produce in Khartoum, Sudan December 2, 2016. REUTERS/Mohamed Nureldin Abdallah
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Sudan’s 2019 Budget Keeps Subsidies, Fights Corruption

Customers look on as a vender displays fresh produce in Khartoum, Sudan December 2, 2016. REUTERS/Mohamed Nureldin Abdallah
Customers look on as a vender displays fresh produce in Khartoum, Sudan December 2, 2016. REUTERS/Mohamed Nureldin Abdallah

Sudan’s government has adopted its 2019 state budget as the country reeled from fresh protests over the rising cost of bread.

The new budget kept subsidies on basic commodities and for the first time included a clause on fighting corruption.

Chairman of the The Sudanese Transparency Organization (STO) Al-Tayeb Mukhtar welcomed the allocation of 1.13 million dollars to eliminate corruption.

He said that according to the United Nations, the state and the government should fund and help the parties combating corruption, whether they are state institutions or representatives of civil society.

The budget was adopted on Thursday as Sudan’s economy struggles under the burden of a climbing inflation and deadly protests that were sparked this week when the government decided to raise the price of a loaf of bread from one Sudanese pound to three (from about two to six US cents).

While not adding new taxes or tariffs in the new budget, the government removed many of the waivers granted to investors and importers. It forecast a 39 percent growth in revenues, reaching 3.43 billion dollars, and a drop from 3.7 to 3.3 percent in deficit.

Prime Minister and Minister of Finance Motazz Moussa told the parliament in a statement that the budget forecast a 5.1 percent economic growth and that subsidies would reach around 1.4 billion dollars, including 53 million dollars for bread and gas.

In an attempt to fight inflation, he also urged local authorities to allow vendors to sell their groceries and other products on their carts without imposing any fees on them.



IMF Trims 2025 Middle East, North Africa Growth Forecast

Jihad Azour, Director of International Monetary Fund Middle East and Central Asia Department, speaks during a press conference at the 2025 annual IMF/World Bank Spring Meetings in Washington, D.C., US, April 24, 2025. REUTERS/Elizabeth Frantz
Jihad Azour, Director of International Monetary Fund Middle East and Central Asia Department, speaks during a press conference at the 2025 annual IMF/World Bank Spring Meetings in Washington, D.C., US, April 24, 2025. REUTERS/Elizabeth Frantz
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IMF Trims 2025 Middle East, North Africa Growth Forecast

Jihad Azour, Director of International Monetary Fund Middle East and Central Asia Department, speaks during a press conference at the 2025 annual IMF/World Bank Spring Meetings in Washington, D.C., US, April 24, 2025. REUTERS/Elizabeth Frantz
Jihad Azour, Director of International Monetary Fund Middle East and Central Asia Department, speaks during a press conference at the 2025 annual IMF/World Bank Spring Meetings in Washington, D.C., US, April 24, 2025. REUTERS/Elizabeth Frantz

The International Monetary Fund said on Thursday it now expects Middle East and North Africa economies to grow by just 2.6% in 2025 as uncertainties stemming from a global trade war and weaker oil prices weigh on the region.
The fresh projection marked a sharp downgrade from its October projection of 4% growth and comes as the region grapples with geopolitical tensions, softer external demand and oil market volatility.
"Uncertainty could impact the real economy, consumption, investment... all these elements led to a softening of our projections," Jihad Azour, the IMF's director for the Middle East and Central Asia department, told Reuters in an interview.
"The direct impact of the tariff measures is limited because the integration in terms of trade between the region and the US is limited."
"The ongoing conflicts in the MENA region have inflicted profound humanitarian costs and left deep economic scars," the IMF said in the report, adding that the impact has been severe for the region's oil importing economies.
The MENA non-oil importers are now expected to see real GDP growth of 3.4% in 2025, versus an earlier forecast of 3.6%.

Growth among non-Gulf Cooperation Council oil exporters is expected to slow by one percentage point in 2025 - a sharp downward revision - before staging a modest recovery in 2026.
On the other hand, GCC economies are projected to strengthen, though at a slower pace than anticipated in October.
IMF projects GCC's GDP growth for 2025 at 3%, down from its October forecast of a 4.2% increase.