South Sudan is projected to see universal poverty by 2025, affected by declining oil production and external shocks. A World Bank report shows that 76% of the population was below the poverty line in 2022, with extreme deprivation rising significantly. Restoration of peace and government reforms are critical for economic recovery.
South Sudan is forecasted to experience universal poverty by 2025, as reported by the World Bank. Factors contributing to this dire prediction include a decline in oil production and external shocks affecting the economy. The World Bank’s “South Sudan Economic Monitor” reveals that 76% of the population lived below the national poverty line in 2022, marking a 7-percentage-point increase since 2015.
Charles Undeland, the World Bank Group country manager for South Sudan, emphasized that prolonged economic decline has been driven by disruptions in oil production due to the ongoing conflict in Sudan, compounded by the effects of COVID-19 and the war in Ukraine. Inflation has soared to 139% as of August 2024, significantly eroding the purchasing power of South Sudanese citizens.
The report highlights a troubling rise in extreme deprivation, with 70% of households unable to afford basic food in 2022, increasing to 84% in 2023 and a staggering 92% in 2024. Undeland remarked that the nation’s economic future heavily relies on the complete restoration of peace and stability, achievable through the full implementation of the 2018 revitalized peace agreement.
Finance Minister Marial Dongrin Ater stated that the government has initiated reforms since the signing of the peace agreement to enhance macroeconomic conditions. He noted efforts to diversify the economy, reduce reliance on oil revenues, and promote agriculture, trade facilitation, and critical infrastructure investment as part of the fiscal budget for 2024/2025.
In conclusion, South Sudan is on the brink of universal poverty due to economic challenges exacerbated by conflict and external shocks. With the need for peace and stability highlighted as crucial for recovery, governmental reforms aim to diversify the economy away from oil dependency. The dire economic conditions pose a significant threat to the population’s well-being, necessitating immediate attention and action.
Original Source: www.lokmattimes.com
