Press Release No. 12/193

Press Release No. 12/193
May 29, 2012

An International Monetary Fund (IMF) mission visited Sudan during May 13–25, 2012, to conduct the 2012 Article IV Consultation. At the conclusion of the visit, the mission chief Mr. Edward Gemayel issued the following statement:

“The IMF team met with Minister of Finance Ali Mahmood Abdulrasool, Minister of Oil Awad AlJaaz, Minister of Mining Kamal Abdelateef, State Minister of Finance Megdi Yasin, Deputy Governor of the Central Bank Badreddin Mahmood Abbas, Under Secretary of Ministry of Finance Yousif AlHussein, members of parliament, representatives of the private sector, civil society organizations, the diplomatic community, and development partners.

“The mission discussed the appropriate policies to address the economic challenges faced by Sudan as a result of South Sudan’s secession. The mission’s preliminary assessment is that economic conditions in Sudan deteriorated in 2011. Economic growth is estimated to have slowed down to 2.7 percent, end-year inflation reached 19 percent, the overall fiscal deficit was about 4 percent of GDP, and the current account registered a surplus of 2 percent of GDP. Preliminary information for 2012 indicates that economic conditions have not improved.

“The mission and the authorities agree that the challenges confronting Sudan are daunting and require appropriate reforms to stabilize the economy. More work is needed to improve prospects for inclusive growth and job creation.

“To address these challenges, the mission recommends a two-pronged reform strategy: short-term emergency measures to regain control of, and stabilize, the economy, including fiscal consolidation, and in the medium-term, a comprehensive structural reform program to recalibrate the economy in line with the country’s economic and financial potential.

“The mission welcomes the government’s reform efforts. It encourages the authorities to expeditiously implement the appropriate policies to address the challenges ahead.

“The mission wishes to thank the authorities for their cooperation and constructive dialogue.”