Sudan's Coup-hit Economy in Free Fall as Prices Bite

People watch as protesters in northern Sudan block a key trade route between Egypt and their country following a dramatic increase of electricity tariffs - AFP
People watch as protesters in northern Sudan block a key trade route between Egypt and their country following a dramatic increase of electricity tariffs - AFP
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Sudan's Coup-hit Economy in Free Fall as Prices Bite

People watch as protesters in northern Sudan block a key trade route between Egypt and their country following a dramatic increase of electricity tariffs - AFP
People watch as protesters in northern Sudan block a key trade route between Egypt and their country following a dramatic increase of electricity tariffs - AFP

Sudanese schoolteacher Babiker Mohamed barely covers his family's needs with his meagre income, but since last year's military coup he no longer knows if he can even keep afloat.

Like many in Sudan, Mohamed has been grappling with shortages in basic goods, as well as new taxes and steep price hikes on fuel, electricity and food since an October military coup led by army chief Abdel Fattah al-Burhan, AFP said.

"I used to buy 20 loaves of bread at 100 Sudanese pounds before the coup," Mohamed, who provides for a family of six, told AFP.

"Bread alone now costs me around 27,000 pounds a month which is like 90 percent of my salary" of about 30,000 pounds (or $50), he said.

"I don't know if I can afford to send my children to school anymore."

Mohamed joined teachers who went on strike this week against the worsening living conditions.

Sudan's latest coup upended a transition painstakingly negotiated between civilian and military leaders following the 2019 ouster of president Omar al-Bashir, whose rule was marked by crippling US sanctions and international isolation.

It also triggered international condemnation and punitive measures, with the United States, World Bank and International Monetary Fund suspending badly needed aid to the impoverished country.

Sudanese exports have sharply declined, foreign currency shortages have been reported, and efforts by local banks to re-establish ties with international counterparts in the US and the West came to a screeching halt.

"It's like the embargo was back since October 25," said economist Sumaya Sayed.

- 'Beyond people's reach' -
Protesters staged several rallies this week against the decline in living conditions.

Sudanese citizens have for decades endured severe economic hardship due to government mismanagement, internal conflicts and the 2011 secession of the oil-rich south.

Bashir himself was ousted in April 2019 following months of street protests initially triggered by the tripling of bread prices.

Essameddine Okasha, spokesman for the association of bakery owners in Khartoum, said bread prices have surged "beyond people's reach".

He attributed the hikes to increasing operational costs.

Sudan is also especially vulnerable to the impact of global supply shortages in the wake of Russia's invasion of Ukraine.

Protesters in northern Sudan have in recent weeks blocked a key trade route between Egypt and Sudan following a sharp increase in electricity tariffs.

In January, Sudanese authorities sharply raised electricity prices across sectors, with households seeing an increase of about 500 percent.

Sudan had already embarked on plans to scrap fuel subsidies under the transition which was derailed by the coup.

Fuel prices have undergone several hikes over the past year.

On Saturday, petrol at the pump cost 672 pounds ($1.50) per liter, up from some 320 pounds before the coup.

- Workers laid off -
Many local business owners have been forced to suspend operations.

"I have laid off some 300 employees, mostly women who were the breadwinners of their families," said a food factory owner in North Khartoum, speaking on condition of anonymity.

"I couldn't keep up with electricity and production input price hikes."

Economist Mohamed al-Nayer says Sudan is in a "state of shock".

"The absence of international aid and loans in the 2022 budget is having a negative effect," he said, pointing out that the fiscal plans rely heavily on tax rises.

"Taxes now constitute 58 percent of the budget, sharply increasing prices and pushing the country into recession."

Sudan has been reeling from triple-digit inflation, which stood at 258 percent in February.

"It will not be possible for the government to bring down inflation... instead it will likely jump to 500 percent," forecast Nayer.

- 'Right decision, wrong time' - Sudan has yet to name a prime minister since the January resignation of UN economist-turned-premier Abdalla Hamdok.

This month, Sudan formed a council to address key economic challenges, led by the deputy head of its Sovereign Council, Mohamed Hamdan Daglo, known as Hemeti.

On March 9, Daglo blamed a "mafia" of currency dealers responsible for currency and gold speculation on the local market.

Sudan's central bank announced this month it will allow the currency to float as part of measures to stem the black market.

"It was the right decision but at the wrong time," according to Sayed.

She said the move would only drive up inflation and further weaken the local currency.

In mid-February, the Sudanese pound hovered at 450 pounds to the dollar but now the greenback buys about 600 pounds.

"Central bank policies... have so far failed," Sayed said. The situation "requires proper reserves of funds and gold".



Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)
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Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)

Iraq produces more than 5 million barrels of oil per day (bpd), Oil Minister Basim Mohammed told state news agency INA on Saturday.

According to Reuters, Iraq is pushing for a higher OPEC production quota as the economic fallout from the Iran war and new investment by oil majors increase pressure on Baghdad to boost output, potentially putting it at odds with the producer group.

The conflict has hit Iraq particularly hard, forcing major export cuts and depriving the state of oil revenue, which accounted for 88% of government income last year.


IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

Central bankers around the world would need to consider any slowdown in AI-driven growth as they assess steps in their fight against inflation, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

Georgieva said concerns about dependence on the AI investment boom and high valuations were impacting markets around the world.

"Things are going up and down, and this is likely to continue," she told an audience at IMF headquarters in Washington, adding that the volatility would complicate the job of central banks at a time when risks to price stability had been growing.

A steep rout in technology stocks on Thursday rippled through markets on fears that ⁠the Democrats' victory ⁠in the US midterm elections would increase regulatory scrutiny of AI and slow the data center build-out, sending investors to the safety of bonds.

The political jitters are hitting an AI trade already on shaky footing due to worry about return on massive spending on AI-related infrastructure, with the meltdown spurring margin calls and spooking retail investors and hedge ⁠funds alike.

Georgieva said the AI investment boom was lifting growth in some countries, helping to offset a negative oil-supply shock triggered by the war in the Middle East, but it was also adding to inflationary pressures and financial stability concerns.

The IMF last month flagged significant growth and financial stability risks from a potential ending of the AI investment boom, among other factors, including a prolonged Middle East war. At the time, it warned that a steep drop in AI investment could lead to a sharp fall in asset prices, ultimately cutting global GDP ⁠by 1.1% ⁠by 2028, including a 1.8% drop in US output.

Georgieva did not repeat the downside forecast on Friday, but acknowledged the recent market volatility.

"Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation," she said.

Democrats are planning to unleash a flood of new legislation targeting artificial intelligence systems and data-center development when they take control of the US Congress in January, Reuters reported on Friday, citing congressional aides and advocates.

That would mark a sharp shift from the Republican-led Congress, where lawmakers largely focused on promoting AI development and declined to pass legislation restricting the technology.


World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
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World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.