South Sudan: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of South Sudan

IMF Staff Country Reports, June 4, 2019

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The peace agreement signed in September 2018 has improved prospects for lasting peace, but implementation has become more protracted than envisaged with a recently announced six-month delay in forming a new national unity government.
A relapse into war in mid-2016 spread insecurity across the country, severely affected all economic activities, and exacerbated the humanitarian crisis and food insecurity.
The country is described as being in a serious economic crisis.
Discussions focused on the urgent need to restore macroeconomic stability and rebuild economic buffers.
Addressing the macroeconomic imbalance, supported by improvements in oil management and public financial management, is important to rebuild confidence in government policies and to regain access to external financial support from development partners.
One key policy recommendation is to strengthen oil management and transparency by an immediate stop of contracting new oil-backed advances.

Conflict relapse in mid-2016: widespread insecurity; severe adverse effects on economic activities; exacerbation of humanitarian crisis and food insecurity.
Macroeconomic imbalance: identified as critical to address to restore stability and confidence.
Access to external financial support: contingent on restoring macroeconomic stability and rebuilding economic buffers.

Immediate stop of contracting new oil-backed advances to strengthen oil management and transparency.
Improvements in public financial management to support macroeconomic stabilization.
Rebuild economic buffers as a prerequisite for regaining external financial support from development partners.

Subject: Commodities, Debt sustainability, Debt sustainability analysis, External debt, Oil, Oil production, Production, Public debt
Keywords: auction rate, authority, clearance plan, CR, Debt sustainability analysis, East Africa, fund policy advice, ISCR, market rate, monetary policy toolkit, Oil, Oil production, rate, Southern Africa, Sub-Saharan Africa