Sudan's fragile economy is facing "daunting" challenges , the International Monetary Fund (IMF) said in its first assessment of the economic health of the east African country, nearly one year after the secession of South Sudan. Sudan lost 75% of its oil reserves after the southern part of the country became an independent nation last July denying the north billions of dollars in revenues. Prior to the country's breakup. Sudan produced close to 500,000 barrels but now its output is limited to 115 barrels per day.
"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," the IMF said in a statement released by an assessment team that was in Khartoum from 13 to 25 May.
The mission chief Edward Gemayel said that the growth slowed down to 2.7 percent, while the inflation reached 19 percent. He added that the fiscal deficit was at 4 percent of Sudan's gross domestic product grew. He further pointed out that the economic situation in Sudan did not show any improvement, according to the preliminary information for this year 2012.
The IMF mission said it recommends a two-pronged reform strategy.