The International Monetary Fund (IMF) has expressed an intention to assist Sudan in overcoming the economic challenges in the country.
The Executive Director, Sudan’s representative at the Board of Executive Directors of the IMF, has affirmed the fund’s readiness to provide the necessary technical assistance for restoring the economic stability.
The IMF issued its report last December, following a visit for the team to Sudan.
“Economic conditions in Sudan remain challenging on the back of persistent fiscal deficits, high inflation, and low access to financing,” revealed the report.
“Bold and comprehensive reforms are needed to stabilize the economy and strengthen growth,” it added, noting that: “The expansion of social safety nets to support the reforms and improvements in the business environment and governance are crucial to unlock growth.”
Appointing Governor of the Central Bank Professor Badreddine Abdel Rahim came in tough times when the economy is facing shrinkage challenges and inflation aggravation, said the executive director.
In Jan., Abdel Rahim revealed a structure for the Central Bank in the coming days under the supervision of a team from the World Bank, which includes studying the current situation of the bank, challenges and requirements.
The report continued: “In 2018, economic activity contracted by an estimated 2.3 percent and GDP is projected to contract by 2.5 percent in 2019. Inflation increased to 60 percent in November 2019, and the parallel exchange rate continues to depreciate rapidly. The fiscal position has deteriorated because of ballooning fuel subsidies and weak revenue mobilization, and the fiscal deficit rose from 7.9 percent in 2018 to 9.3 percent of GDP in 2019."
" The economic outlook remains bleak absent policy adjustment and comprehensive reforms.”
