The World Bank forecasts universal poverty in South Sudan by 2025, driven by declining oil production and external shocks, with over 76% of the population living below the poverty line. Inflation has reached 139%, greatly impacting purchasing power. Economic recovery is tied to the peace agreement’s implementation, while the government pursues reforms to diversify the economy.
South Sudan is anticipated to face universal poverty by 2025, as reported by the World Bank. This projection arises from a decline in oil production and external shocks. According to the “South Sudan Economic Monitor” report released recently, over 76% of the population was living below the national poverty line in 2022, indicating a significant rise from previous years.
World Bank Group Country Manager for South Sudan, Charles Undeland, highlighted that the ongoing war in neighboring Sudan, the COVID-19 pandemic, and the implications of the Ukraine war have all contributed to worsening economic conditions. He noted that inflation reached 139% in August 2024, severely diminishing the purchasing power of South Sudanese citizens
The report further reveals that extreme deprivation, defined as households unable to afford basic food, increased from 70% in 2022 to a staggering 92% in 2024. Undeland emphasized that economic recovery is contingent on achieving peace and stability, necessitating full compliance with the revitalized peace agreement of 2018.
South Sudan’s Minister of Finance and Planning, Marial Dongrin Ater, mentioned that the government has initiated reforms to enhance macroeconomic conditions and boost public financial management since the peace agreement. He stated, “Recognising the vulnerability due to our heavy reliance on oil revenues, we have taken concrete steps to broaden our economic base,” including support for agriculture and investment in critical infrastructure.
In summary, the World Bank projects that South Sudan will face universal poverty by 2025 due to economic challenges exacerbated by external factors, including ongoing conflicts and inflation. The high poverty rates and extreme deprivation levels highlight the urgent need for economic reform and stability, which hinges on the successful implementation of the peace agreement. Government initiatives aim to diversify the economy to mitigate reliance on oil revenues and improve living conditions for citizens.
Original Source: www.lokmattimes.com
