Sudan's economy contracts 40% as war rages

The economy in Sudan has shrunk by 40 percent last year due to the armed conflicts in many places of the country and it is predicted to continue shrinking by about 28 percent in 2024, said Finance Minister Gibril Ibrahim on Monday.

At a press conference in Port Sudan, the Finance Minister said that Sudan's economy is going through the worst period in its history, adding that the conflicts have caused great damage to infrastructure, public facilities, private homes and property throughout the country.

Ibrahim said that state revenue has dipped by over 80 percent. The government is considering the possibility of establishing an alternative capital as the capital city Khartoum suffers the most serious damage.

"As the backbone of Sudan's economy, the industrial sector has been severely damaged by the conflict. Infrastructure like roads and supply chains have been damaged which impeded foreign trade and export. Bilateral trade between Sudan and neighboring countries such as Libya and Chad has slumped dramatically. But the financial system was worst hit which caused a liquidity crunch in banks and triggered systemic risks," said Rasheed Ibrahim, a Sudanese economist.

A civil war erupted on April 15 last year between two military factions, the Sudanese army and the Rapid Support Forces, in the capital of Khartoum, bringing destructive impact on Sudan's economy, infrastructure, and health system and leaving thousands of hundreds of people displacement.

In its latest situation update, the UN Office for the Coordination of Humanitarian Affairs said about 8.1 million people have fled their homes in Sudan since the outbreak. Of the displaced, about 6.3 million people were within Sudan and another 1.8 million people have fled to neighboring countries.

About 13,900 people have lost their lives in the conflict, according to UN figures.