Economic Crisis, Macroeconomic Policies and External Trade in Sudan

Abstract

Nowadays, Sudan suffers severe financial crisis with the demise of 75% of its oil revenues that represented over 90% of its foreign currency after the secession of its Southern part after a constitutional referendum. The compensatory revenues generating economic sectors are not able in the short, medium or runs to function due to the lack/diminished infrastructures. Hard currency exchange rates have soured against the domestic one and inflation sky-rocketed with severe recession grasping the economic cycle in the country which assess logic assumptions of stagflation. Reforming Sudan's foreign trade sector is essential though it will not replace oil revenues in the near future. The current exports do not cater for the gap in the balance of payments. The only possible solutions will be only through ameliorating the existing economic sectors and refer to the bitter remedy of austerity and limiting imports. However, economic reforms, transparency and fighting corruption are irreplaceable measures that should be applied. Without that, the country faces eminent economic collapse instead of the current economic chaos.