IMF expects a catastrophic contraction of the Sudanese economy in 2024
Port Sudan – Sudan Events
The International Monetary Fund warned of a catastrophic contraction of the Sudanese economy by 18.3% in 2024, as a result of the protracted conflict that has entered its 11th month without any signs of a peaceful solution on the horizon. The prediction comes after the economy contracted by 12% in 2023, according to World Bank estimates, as the war halted production and destroyed human capital and state capabilities. The United Nations Office for the Coordination of Humanitarian Affairs (OCHA) confirmed in an update seen by Sudan Tribune on Sunday that “the International Monetary Fund expects a decline in Sudan’s real GDP by 18.3% in 2024.” The update indicated that the pace of economic contraction in Sudan is more than double the economies of Syria and Yemen, which shrank by 50% over the past decade, equivalent to a 5% decline annually. The update stated that the conflict in Sudan led to the destruction of the industrial base, education, and health facilities, in addition to the collapse of economic activities, including commercial, financial, information and communications technology services, and the erosion of state capacity. Sudan’s gross domestic product reached $34.3 billion at the end of 2021, according to World Bank estimates.
The economy registered a meager growth of 0.3% that year, but has witnessed a significant decline since then. This decline is due to a number of factors, the most important of which is the military coup that took place.
