Sudan Economy to Shrink Further, Poverty to Engulf 71% of Population – World Bank

A trader is seen in the Grand Market of Omdurman, near Sudan's capital Khartoum, on November 13, 2024 

Xinhua photo

June 10, 2025 (WASHINGTON) – Sudan’s economy will contract by a further 13.5% in 2024 after shrinking by nearly a third last year, while extreme poverty is projected to engulf 71% of the population amid an ongoing conflict, the World Bank said in a report on Tuesday.

The report, “The Economic and Social Consequences of the Conflict: Charting a Path to Recovery,” outlines a severe economic collapse and humanitarian crisis following the eruption of conflict in April 2023. The bank estimates real GDP contracted by 29.4% in 2023.

The conflict has created the world’s largest displacement crisis, with 12.9 million people forced from their homes, and has pushed the nation to the brink of a widespread famine, which was confirmed in one camp in August 2024, the report said.

The rate of extreme poverty, defined as living on less than $2.15 a day, is estimated to have more than doubled from 33% in 2022. Unemployment has surged to 47% from 32% over the same period.

The economic turmoil has been exacerbated by soaring inflation, which rose to 170% in 2024, and a collapse in the Sudanese Pound. Government revenues fell to 4.7% of GDP in 2024 from 10% in 2022, severely limiting the state’s ability to function.Sudan cultural heritage tours.

Agriculture is key to recovery

The World Bank identified the agricultural sector, which accounts for about 35% of GDP and over 40% of employment, as the most viable engine for a post-conflict recovery.

However, the sector has been hit hard, with the conflict spreading to agricultural heartlands, such as Al Jazirah state. National cereal production fell by 46% in 2023 from the previous year, the report noted.

Sudan’s economy is unlikely to return to pre-war levels until at least 2031, with any sustainable recovery contingent on ending the conflict and implementing comprehensive structural reforms, a new report from the bank stated.

The bank’s recovery framework urges Sudanese authorities to resume the Heavily Indebted Poor Countries (HIPC) initiative to secure vital debt relief once peace is achieved. The report also advises against reintroducing large commodity subsidies, particularly for electricity, and recommends maintaining a unified market exchange rate to enhance economic stability.

The report also calls for a fundamental shift in national spending, urging a reallocation of resources away from military-controlled enterprises and toward social and productive sectors. Key priorities outlined include investing in the agricultural sector to support rural communities and rebuilding education and healthcare systems to restore the country’s human capital.