Sudan and South Sudan Food and Drink Report Q2 2014

Sudan and South Sudan Food and Drink Report Q2 2014

Published: March 2014
Publisher: BMI Research
Product ref: 198029
Pages: 60
Format: PDF
Delivery: Immediate download

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BMI View: We forecast that real GDP growth in Sudan will reach 2.5% in 2014, a significant improvement from the 2013 rate, estimated at 1.4%. Even so, significant headwinds persist, and this rate of economic expansion is far below the 6.8%-average the country experienced over the 10 years prior to the secession of South Sudan in 2011.

Inflation in Sudan averaged 36.6% over the first 11 months of 2013, among the highest rates in the world. Unfortunately for consumer purchasing power, the trend is in the wrong direction, with price growth rising to 42.6% year-on-year in November, up from a low of 22.9% in August. Although policymakers have committed to bringing inflation under control by refraining from printing money to finance government expenditures, we expect that inflationary pressures will remain elevated over the near term. Despite these inflationary factors, we believe that the government's goal to halve inflation over the course of 2014 is within reach; our own forecast is for end-2014 price growth to fall to 25.0%.

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