ECONOMIC GROWTH OF SUDAN

Economic growth of Sudan

Abstract

This paper discusses in detail the reasons of the low level of economic growth of the country. The country is now more dependent on the oil revenues. The oil price fluctuation is very common now a days. This is the reason that the economic growth of the country has not been able to maintain its initial figures that were in the last two decades. Moreover, the global financial crisis is also one of the reasons that impaired the economic growth of the country. Other reasons for this low level growth are discussed in detail in this paper.

Introduction The Republic of Sudan is located at the north-eastern side of Africa and is the greatest African nation. Its strategic position is of significance. It is bordered by some noteworthy states. The administrative security of the nation was challenged after it got free from the holds of outside rulers. Sudan's freedom was accompanied by a protracted time of common war. Sudan also faced some great economic challenges. In 1989, Omar al-Bashir took the charge of Sudan as a President and began working for setting the nation on the way of thriving. Granted that the administration of Sudan has made remarkable endeavours to address expanding budgetary and social challenges by presenting discriminating measures however still the aforementioned exertions have not had the capacity to bring about noteworthy change financial figures. GDP development of Sudan demonstrated a reduced from 5% in 2010 to almost 2.8% in 2011. The withdrawal of South Sudan diminished the residents by 20% inasmuch as oil incomes diminished by 75% (African Economic Outlook, 2011, p.1). In 2012, GDP of Sudan expanded up to 5.4%. Security threats, decrease in oil revenues and different clashes in the nation are accounted for as the main reasons for this increase.

Sudan's Economic Growth

After independence the prolonged civil war in Sudan had shattering effects on the stability of the country and population led a very disturbing time during the war. This war with whatever reasons of socio-economic injustice, imprudent land reforms etc adversely affected the stability of the country by causing low level of economic growth. Civil war holds important reasons for the understanding the economic growth process of Sudan. A number of other factors are accounted for the low level economic growth of Sudan.

Contribution of Sudan in International Business Sector

Amongst the various African countries, Sudan's contribution in the international business sector is really slow. In the previous year it was only about a few percent. The contribution of Sudan in world trade is also not significant. Its share in international trade was also very minimal. In 2010, Sudan reports a current account discrepancy of US$5.79 billion (Economy Watch Content, 2010, p.1). This is not at all surprising taking into account the fact that at the international level, the most integrated areas all across the globe are regarded as the most spirited and economical. During the last year, for Sudan, the topmost trading ally areas were the United ...