Synopsis
According to the World Bank, South Sudan is expected to face universal poverty by 2025 due to declining oil production and external shocks. The report reveals that poverty levels have escalated significantly, with inflation and extreme deprivation posing urgent challenges to economic stability.Key Takeaways
- Universal poverty is predicted for South Sudan by 2025.
- Severe inflation has reached 139% as of August 2024.
- Over 76% of the population lives below the national poverty line.
- Extreme deprivation has risen to 92% in 2024.
- Economic recovery depends on peace and stability.
Juba, March 14 (NationPress) South Sudan is forecasted to encounter universal poverty by 2025, attributed to various factors including a drop in oil production and external shocks, according to a report from the World Bank.
The report, which was released on Thursday under the title "South Sudan Economic Monitor," highlights that over three-quarters of the South Sudanese population (76 percent) lived beneath the national poverty line in 2022, marking a 7-percentage-point rise since 2015, as reported by Xinhua news agency.
During the report's launch in the capital city of Juba, Charles Undeland, the World Bank Group’s country manager for South Sudan, remarked that the escalating poverty levels stem from years of economic downturn driven by the interruption of oil production due to the ongoing conflict in neighboring Sudan, the impacts of COVID-19, and the indirect consequences of the war in Ukraine.
"Inflation is exceedingly high, reaching 139 percent in August 2024, which is, of course, diminishing the purchasing power of all South Sudanese," Undeland stated. He also noted that prolonged periods of severe flooding have adversely affected the economy.
The report indicates that extreme deprivation—defined as the proportion of households unable to afford even the most basic food—rose by 4 percentage points to 70 percent in 2022, subsequently increasing to 84 percent in 2023 and 92 percent in 2024.
Undeland emphasized that the economic outlook for South Sudan relies on the complete restoration of peace and stability through the thorough implementation of the 2018 revitalized peace agreement.
Marial Dongrin Ater, South Sudanese Minister of Finance and Planning, mentioned that since the peace agreement was signed, the government has launched reforms aimed at enhancing macroeconomic conditions and improving public financial management.
"Acknowledging our vulnerability due to significant reliance on oil revenues, we have taken tangible measures to diversify our economic base. These efforts include boosting support for agriculture, improving trade facilitation, and encouraging investment in essential infrastructure, as shown in the 2024/2025 fiscal year budget," he added.
