The Impact of Global Financial Crisis in Sudan

Abstract

This research paper aims at analyzing the economic condition of Sudan. The country has gone through many up-downs on economic and social parameters and the growth has been impacted negatively by the tumultuous civil and military incidences occurring now and then. During the recent years, especially since 2008 Global Financial crisis the economy has performed poorly as its gross domestic product dwindled from 10.5% in 2007 to 3.75% in 2008. The growth rate of Sudan has been fluctuating constantly after its independence. Sudan is buffeted by civil war, political instability, adverse weather, weak world commodity prices, a drop in remittances from abroad, and counterproductive economic policies in the recent few years. It is an African country which has close connections with Egypt and Islam. The political history is full of turmoil and civil wars have dented on the economic growth of the country as well. The period 1899–1956, under the British colonial administration, saw the laying of the foundation of the modern economy of Sudan but till date the country is in its formative stage. Though oil is a major resource endowment of Sudan, the country has not tapped its resource in the right direction. Monetary policy and the banking system world over has become much vulnerable in the current international paradigm and Sudan is not untouched. As financial distortion is an issue that cuts across the other sectors of the economy and has a long term impact on the recovery process, this paper will deal with the financial setup of Sudan and find out the impact of financial in stability on the country’s economic growth process. The another basic objective is to look into the economic changes taking place due to global changes in the agricultural, industrial and other important sectors of the economy and how these changes have affected the financial condition of the country.