Sudan's economy is in poor shape and faces high inflation in the wake of the secession of the oil-rich south, the International Monetary Fund said Tuesday. With Khartoum opening new peace talks with South Sudan Tuesday after more than a month of deadly border fighting, the IMF said Sudan's economic conditions are not improving after worsening last year.
"The challenges confronting Sudan are daunting and require appropriate reforms to stabilise the economy. More work is needed to improve prospects for inclusive growth and job creation," the IMF review mission said. While the economy grew last year at 2.7 percent, inflation hit 19 percent by the end of the year and the government's fiscal deficit grew to four percent of GDP.
"Preliminary information for 2012 indicates that economic conditions have not improved." Sudan is behind in payments on about $1.5 billion in loans and interest payments to the IMF. Its last loan program from the Fund was nearly three decades ago, and the country has made small payments on its debt in recent years.
Earlier Tuesday negotiators for Sudan and South Sudan met in the Ethiopian capital of Addis Ababa for their first direct talks since border fighting last month took them back to the brink of war. The two remain deeply at odds over the border and the region's oil wealth since the South won independence last July. The talks are being mediated by former South African President Thabo Mbeki.
Comments
Comments are closed.