Sudan’s annual inflation rate rose by 23.05 percent – from 143.78 percent in July to 166.83 percent in August – due to the hike in food and transportation prices, the country’s statistics office said Monday.
Prior to the pandemic, the African Development Bank (AfDB) projected an inflation rate of 61.5 percent this year and 65.7 percent for 2021, due to the monetization of the fiscal deficit. But in May, the country’s economic crisis worsened as Sudan’s annual inflation rate topped the 114 percent mark with the rise in food, beverages, fuel, and a black market for U.S. dollars.
The state declared an economic state of emergency on Thursday, September 11, after its currency fell in recent weeks, setting up special courts to prosecute what officials called a “systematic operation” to vandalize the economy.
Since the ousting of autocrat leader Omar al-Bashir last year, Sudan’s economy has worsened with inflation skyrocketing. The transitional government has since struggled with economic reforms and proved unable to halt a fall of the Sudanese pound on the black market.
The economy contracted by 2.5 percent in 2019 and was projected by the AfDB to further contract by 1.2 percent this year and 0.8 percent in 2021. This is due to the political situation, tepid domestic demand, and weak private sector investment.
Sudan’s government and the International Monetary Fund (IMF) have reached an agreement on a joint program that will pave way for international funding and investment. The program will focus on productive sectors, infrastructure, job opportunities, and strengthening efforts to fight corruption and promote good governance.