In
2010, Sudan was considered the 17th-fastest-growing economy in the world and
the rapid development of the country largely from oil profits even when facing
international sanctions was noted by The New York Times in a 2006 article.
Because of the secession of South Sudan, which contained over 80 percent of
Sudan's oilfields, the economic forecast for Sudan in 2011 and beyond is
uncertain.
Even
with the oil profits before the secession of South Sudan, Sudan still faced
formidable economic problems, and its growth was still a rise from a very low
level of per capita output. In any case, the economy in the Sudan has been
slowly growing over the last ten years, and according to a World Bank report
the overall growth in GDP in 2010 was 5.2 percent compared to 2009 growth of
4.2 percent. This growth was sustained even during the crisis in Darfur and period
of southern autonomy preceding South Sudan's independence.
While
historically agriculture remains the main source of income and employment
hiring of over 80 percent of Sudanese, and makes up a third of the economic
sector, oil production drove most of Sudan's post-2000 growth. Currently, the
International Monetary Fund IMF is working hand in hand with Khartoum
government to implement sound macroeconomic policies. This follows a turbulent
period in the 1980s when debt-ridden Sudan's relations with the IMF and World
Bank soured, culminating in its eventual suspension from the IMF.The program
has been in place since the early 1990s, and also work-out exchange rate and reserve
of foreign exchange. Since 1997, Sudan has been implementing the macroeconomic
reforms recommended by the International Monetary Fund.
In
1999, Sudan began exporting crude oil and in the last quarter of 1999, recorded
its first trade surplus. Increased oil production (the current production is
about 520,000 barrels per day (83,000 m3/d)) revived light industry, and
expanded export processing zones helped sustain gross domestic product (GDP)
growth at 6.1 percent in 2003. These gains, along with improvements to monetary
policy, have stabilized the exchange rate. The People's Republic of China is
Sudan's largest economic partner, with a 40 percent share in its oil.[ The
country also sells Sudan small arms, which have been used in military
operations such as the conflicts in Darfur and South Kordofan.
Oil
was Sudan's main export, with production increasing dramatically during the late
2000s, in the years before South Sudan gained independence in July 2011. With
rising oil revenues, the Sudanese economy was booming, with a growth rate of
about nine percent in 2007. Sustained growth was expected the next year in 2008
because of not only increasing oil production, but also to the boost of
hydroelectricity (annual electricity yield of 5.5 TWh) provided by the Merowe
Dam.
The independence of oil-rich South Sudan, however, placed most major
oilfields out of the Sudanese government's direct control. In order to export
oil, South Sudan must rely on a pipeline to Port Sudan on Sudan's Red Sea
coast, as South Sudan itself is landlocked, as well as on Sudan's superior
refinery infrastructure. The exact terms of a revenue-splitting agreement between
Juba and Khartoum have yet to be established, but Sudan will likely receive a
significant portion of the income from South Sudan's oil sales as a fee for the
use of Sudanese pipelines, refineries, and port facilities, perhaps as much as
50 percent of the profits.
Agriculture
production remains Sudan's most-important sector, employing eighty percent of
the workforce and contributing thirty-nine percent of GDP, but most farms
remain rain-fed and susceptible to drought. Instability, adverse weather and
weak world-agricultural prices ensures that much of the population will remain
at or below the poverty line for years.
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