On March 15, 2017, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation 1 with the Republic of South Sudan.
South Sudan faces enormous economic and humanitarian challenges in the aftermath of internal conflict and external shocks. The relapse into violence a few months after forming a transitional governmentofnationalunity in April 2016 compounded the humanitarian crisis and derailed the peace process. The conflict has contributed to the deaths of thousands and led to severe food insecurity for nearly half of
’s infrastructure and oil fields and undermined already fragile institutions. The sharp decline in oil prices from late 2014 caused further decline in foreign exchange receipts, government revenue, and real disposable income.
2. The country continues to face multi-faceted challenges . After long delay, the Transitional GovernmentofNationalUnity (TGNU) was formed in April 2016, in line with the August 2015 peace agreement. The return to Juba of former Vice President Machar paved the way for the new government, headed by President Kiir with Machar as First Vice President
On May 3, 2006, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Sudan. 1
Despite some delays, the implementation of the Comprehensive Peace Agreement with the South began in 2005. An interim national constitution was put into force, the GovernmentofNationalUnity and the government of Southern Sudan were set up, and the central government began transferring oil revenues to the South as stipulated in the peace agreement. Further work is required, especially to make operational the
Sudan’s 2006 Article IV Consultation reports that growth has been robust, inflation has been kept at a single-digit level, and important reforms have been undertaken. There has been progress with financial sector reforms and trade liberalization, and the managed floating exchange rate regime has been working well. Despite an increase in oil revenues, the fiscal space of the central government will be constrained because of the transfers required by the peace agreement and decentralization.