The ongoing conflict in Sudan between the Army and the Rapid Support Forces has exacerbated the economic situation, which already suffers multiple problems and crises, as the conflict does not just hit Sudan’s infrastructure and productivity but also hit deep in the economic capabilities of the citizens.
Although several economic reports have not been able to estimate the scale of economic losses resulting from that conflict, Associate Professor of investment risk analysis at Al al-Bayt University, Jordan, Dr. Omar Gharaibeh considered, in his remarks to Qatar News Agency , that the continuation of confrontations would lead to the depletion of Sudan’s resources on both economic and humanitarian levels in terms of direct military spending; losses in productivity, savings, and infrastructure; and tearing up the social cohesion. He indicated that these confrontations would have a direct negative impact on growth rates, which are considered relatively low, especially since they did not exceed 2% in recent years, which impedes growth and development, increases pressures on the living conditions of citizens, and increases poverty and unemployment rates.
He explained that the continuation of the current confrontations in Sudan would form a repelling environment for investors according to the economic role that says money avoids risk and always seeks a safe environment for investment and stability. He pointed out that the confrontations would negatively impact the decline in purchasing power for the Sudanese pound and accelerates the economic collapse. The Sudanese pound exchange rate is expected to decline to 600 pounds against $1, which will increase inflation, whether at the level of prices of imported goods, production factors prices, or depletion of the states reserves of foreign currencies, which will increase the deficit in the state’s trade balance, pushing the authority for more external borrowing and increase indebtedness to cover the budget deficit, but this will have a great impact on the lives of citizens.
Source: Qatar News Agency