Economy of Sudan

Despite being the 17th fastest growing economy in the world with new economic policies and infrastructure investments, and the Sudan’s economy is relatively diversified and open, it has developed since 1999 a marked dependency on the oil sector that has substantially increased its vulnerability to external and fiscal shocks. The oil sector‘s contribution to GDP has been modest, hovering around 15 percent. However, it provided sizeable budget revenues and contributed a major share of the country’s foreign exchange receipts. The economic and financial losses related to South Sudan’s secession are substantial and have affected all the sectors of the economy.

The loss of output is concentrated in the oil sector and estimated at 75 percent, compared with 5–10 percent in the rest of the economy. Prior to the country's breakup, Sudan oil production was close to 500,000 barrels per day. In terms of value-added, the overall loss is about SDG 50 billion (about 26 percent of 2012 GDP), of which about 19 percent of GDP in the oil sector.

The revenue loss for the government is estimated at SDG 12 billion (about 6 percent of GDP), corresponding to the foregone oil revenues net of the transfers to South Sudan and the savings on wages of South Sudanese civil servants.

On the external sector side, the main impact is related to the loss of oil exports estimated at about US$6.6 billion (12.9 percent of GDP) in 2012.

Sudan has opened the country's first gold refinery, which officials say is one of Africa's largest plants. Analysts say it is part of a strategy by the government to deal with the loss of oil revenue following the session of South Sudan in 2011.

Faced with the loss of most oil reserves to South Sudan when it seceded in 2011, Sudan is trying to boost exports of gold and farming exports such as cotton, cash crops or gum Arabic from its vast farmlands.

The loss of oil revenues, which used to be the main source for state revenues and dollars needed to pay for food imports, has thrown the economy into turmoil. The Sudanese pounds has more than halved in value since the secession.

After a year of uncertainty, the authorities approved in late June 2012 a comprehensive reform program to address the deterioration of the country’s economic and financial situation. The program-which builds on the authorities’ Three-Year Emergency Program - includes an exchange rate devaluation of about 66 percent, an increase in key taxes, a sharp reduction in fuel subsidies, cuts in non-priority spending, and a strengthening of the social safety nets.

Essential Information

Area: 1,861,484 (2,505,813 sq km was the area of Sudan before the independence of the Republic of South Sudan with an area of 619,745 km2, 25% of the total area of the former Sudan).
Population: 34,847,910 (2012 est.)  
(Following the independence of the Republic of South Sudan, with a population of 8.26 million or 22% of the former Sudan total population).
Capital: Khartoum
Principal Towns: Omdurman, Port Sudan, Attbara, WadiMadani, El Obeid.
Languages: Arabic is the official language and is generally used in business throughout the country. English is often used in academic and business circles. African languages include Nilotic and Nilo-Hamatic. Sudan has some 100 languages.
Gross Domestic Product: $51.6 billion (2012 est.)
GDP per capita: $1'481
International Reserves: $1.9 billion (2012 est.)
Climate: Temperatures are generally high throughout the year, reaching more than 38 degrees C in Khartoum in May and June. February and March are the hottest months in the south, where the annual average temperature is 30 degrees C.
Currency: $1 ≈ 4.412 Sudanese Pound (SDG)
 
DEMOGRAPHY
Age Distribution (2012 est.)
0-14 years: 41.4%
15-24 years: 20%
25-54 years: 31.4%
55-64 years: 3.8%
65 years and over: 3.3%
 
Population Growth: 1.88% (2012 est.)
Education (2003 est.): 61.1% of the total population age 15 and over can read and write.
 
NATURAL RESOURCES
Fossil Fuel
Petroleum and natural gas
Minerals
Small reserves of iron ore, copper, chromium ore, zinc, tungsten, mica, silver, gold.

Visa Requirements:

Visas are required by visitors except those in transit and Egyptian and Tanzanian residents. Travellers are required to register with police headquarters within three days of arrival in the country.
There are no restrictions on the import or export of foreign exchange.

 Independence Day of Sudan, 1 January

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Diplomatic representation of Sudan in Switzerland