[ad_1]
1 August 2024 (Juba) – South Sudan’s economy is expected to decline by 5% in 2024, compared with a growth rate of 7.0% last year, a new report shows.
The report released by the African Development Bank (AfDB) on July 31, 2024, cited data from the South Sudan Country Focus Report 2024 collected between March and July 2024.
The decline in oil production was due to the ongoing war in Sudan, which has disrupted oil deliveries.
Oil is the mainstay of South Sudan’s government’s annual budget and spending. Sudan’s war has reduced its revenue sources for a country struggling to recover from internal conflict and the implementation of the 2018 Revitalized Peace Agreement has been slow.
The report, prepared by South Sudan experts from the African Development Bank and relevant economic institutions, examines macroeconomic performance.
David Chan Thiang, macroeconomic adviser at the African Development Bank, said at a report launch in Juba on Thursday that the decline in oil production was due to the ongoing civil war in neighboring Sudan, which has disrupted crude oil exports from Port Sudan.
He noted that “real GDP (gross domestic product) is expected to contract by 5% in 2023-2024 due to reduced oil production caused by pipeline damage due to the ongoing conflict in Sudan,” adding that it will recover by 1% in 2024-2025 as oil production and exports remain relatively stable.
Samuel Yanga Mikaya, first deputy governor of the Bank of South Sudan, said the recommendations set out in the report provided a clear roadmap for addressing the economic crisis.
“The report’s findings highlight the huge potential of our country, with its rich natural resources, young and dynamic population and growing and demanding private sector. South Sudan is poised to embark on a transformative journey,” Mikaya said.
“However, we also recognise the challenges we face. These include mainstreaming the agricultural sector, infrastructure deficit, the need to reform the international financial architecture and people-centred economic growth,” he added.
Civil war in neighboring Sudan has severely disrupted oil exports, depriving South Sudan’s treasury of petrodollars, the government’s main source of revenue. South Sudan’s oil pipeline, which exports 60% of its crude oil to international markets for sale, has been affected since it ruptured in February 2024 and has yet to be repaired.
The rupture site is located in a conflict zone between Sudan’s warring parties, Sudanese Armed Forces and paramilitary Rapid Support Forces fighters, which restricts the movement of technical teams.
(English stone)
[ad_2]
Source link
