Inflation plays havoc on Sudanese economy

(2 minutes read)

·        Sudan’s annual inflation rate crossed the whopping  64.3 .3%
in January, from 57.1% in December 2019, riding on the back of rising
food, beverages, fuel and other essential goods  prices

·        The year 2011 was a watershed for Sudan, when the South of
the country seceded,  taking away three-quarters of its oil output, a
crucial source of foreign currency.

Sudan’s annual inflation rate crossed the whopping  64.3 .3% in
January, from 57.1% in December 2019, riding on the back of rising
food, beverages, fuel and other essential goods  prices. This was
revealed by the state statistics agency recently. The inflation was
ruling high for quite some time. Apart from soaring food and drink
prices, there is an unstoppable black market for US dollars since the
people have lost their faith in the local currency. Some of the
traders insist on payment of US dollars for buying goods and services.
Another factor that led to the rise in inflation was the widespread
agitations. Some of the essential goods like food and  beverages
disappeared from the racks to be sold in the black market. The
widespread protests led to the ouster of the then President Omar
al-Bashir in April 2019 and  taking over the reins of power  by the
country’s transitional authorities. They are now facing the toughest
task of turning around an economy wrecked by three decades of
mismanagement under the former president.

The year 2011 was a watershed for Sudan, when the South of the country
seceded,  taking away three-quarters of its oil output, a crucial
source of foreign currency. Since then, the country was facing
financial problems, which got compounded by the profligacy and
corruption of the administration. The demonstrations got aggravated on
19 December 2018.  A series of demonstrations broke out in several
Sudanese cities, due to economic breakdown. The protests quickly
turned from demands for urgent economic reforms into the ouster of
President Omar al-Bashir’. Even after his stepping down, it seems that
the problems are still at large.