Economy

In 2010, Sudan was considered the 17th-fastest-growing economy in the world and the rapid development of the country largely from oil profits even when facing international sanctions was noted by The New York Times in a 2006 article. Because of the secession of South Sudan, which contained over 80 percent of Sudan’s oilfields, Sudan entered a phase of stagflation, GDP growth slowed to 3.4 percent in 2014, 3.1 percent in 2015 and is projected to recover slowly to 3.7 percent in 2016 while inflation remained as high as 21.8% as of 2015.

Even with the oil profits before the secession of South Sudan, Sudan still faced formidable economic problems, and its growth was still a rise from a very low level of per capita output. The economy of Sudan has been steadily growing over the 2000s, and according to a World Bank report the overall growth in GDP in 2010 was 5.2 percent compared to 2009 growth of 4.2 percent.[10] This growth was sustained even during the war in Darfur and period of southern autonomy preceding South Sudan’s independence. Oil was Sudan’s main export, with production increasing dramatically during the late 2000s, in the years before South Sudan gained independence in July 2011. With rising oil revenues, the Sudanese economy was booming, with a growth rate of about nine percent in 2007. The independence of oil-rich South Sudan, however, placed most major oilfields out of the Sudanese government’s direct control and oil production in Sudan fell from around 450,000 barrels per day (72,000 m3/d) to under 60,000 barrels per day (9,500 m3/d). Production has since recovered to hover around 250,000 barrels per day (40,000 m3/d) for 2014–15.

In order to export oil, South Sudan relies on a pipeline to Port Sudan on Sudan’s Red Sea coast, as South Sudan is a landlocked country, as well as the oil refining facilities in Sudan. In August 2012, Sudan and South Sudan agreed a deal to transport South Sudanese oil through Sudanese pipelines to Port Sudan.

The People’s Republic of China is one of Sudan’s major trading partners, China owns a 40 percent share in the Greater Nile Petroleum Operating Company. The country also sells Sudan small arms, which have been used in military operations such as the conflicts in Darfur and South Kordofan.

While historically agriculture remains the main source of income and employment hiring of over 80 percent of Sudanese, and makes up a third of the economic sector, oil production drove most of Sudan’s post-2000 growth. Currently, the International Monetary Fund IMF is working hand in hand with Khartoum government to implement sound macroeconomic policies. This follows a turbulent period in the 1980s when debt-ridden Sudan’s relations with the IMF and World Bank soured, culminating in its eventual suspension from the IMF.[123][page needed] The program has been in place since the early 1990s, and also work-out exchange rate and reserve of foreign exchange.[10] Since 1997, Sudan has been implementing the macroeconomic reforms recommended by the International Monetary Fund.

Agricultural production remains Sudan’s most-important sector, employing 80 percent of the workforce and contributing 39 percent of GDP, but most farms remain rain-fed and susceptible to drought. Instability, adverse weather and weak world-agricultural prices ensures that much of the population will remain at or below the poverty line for years.

The Merowe Dam, also known as Merowe Multi-Purpose Hydro Project or Hamdab Dam, is a large construction project in Northern Sudan, about 350 kilometres (220 mi) north of the capital, Khartoum. It is situated on the River Nile, close to the Fourth Cataract where the river divides into multiple smaller branches with large islands in between. Merowe is a city about 40 kilometres (25 mi) downstream from the dam’s construction site.

The main purpose of the dam will be the generation of electricity. Its dimensions make it the largest contemporary hydropower project in Africa. The construction of the dam was finished December 2008, supplying more than 90 percent of the population with electricity. Other gas-powered generating stations are operational in Khartoum State and other States.

According to the Corruptions Perception Index, Sudan is one of the most corrupt nations in the world. According to the Global Hunger Index of 2013, Sudan has an GHI indicator value of 27.0 indicating that the nation has an ‘Alarming Hunger Situation’ and earning the nation the distinction of being the 5th hungriest nation in the world. According to the 2015 Human Development Index (HDI) Sudan ranked the 167st place in Human Development, indicating Sudan still has one of the lowest human development in the world. Almost one-fifth of Sudan’s population lives below the international poverty line which means living on less than US$1.25 per day.