IMF projection (Photo: IMF).

The International Monetary Fund has projected South Sudan in third position among 26 Sub-Saharan African countries to see higher economic growth rates in 2022.

In the IMF’s World Economic Outlook, released this month, Seychelles tops the list of countries that will finish the year with the highest Growth Domestic Product (10.90), followed by Niger (6.74) and South Sudan (6.54).

Mauritius has been ranked fourth with a GDP rate of 5.15, while the Democratic Republic of Congo stand fifth in the projection (with a GDP of 5.13).

South Sudan’s GDP was at its highest peak (18.43) in 2013, but plunged to zero during the conflict, before picking a slow growth in 2018.

The GDP value of the country represents less than 0.01 percent of the world economy.

The country, with two third of its population depending on humanitarian assistance, has attained one of the highest standard measure of value addition, created through the production of goods and services during a certain period.

According to the UN, 7.7 million people – more than half of South Sudan’s population are unable to feed themselves adequately, and depend on aid – a situation attributed to rising prices on the world market, severe impacts of climate change and economic consequences of the pandemic. 

IMF said in August 2022, that the COVID-19 pandemic reversed South Sudan’s economic recovery that followed the 2018 peace agreement, with oil price shock from the pandemic resulted in a massive loss of revenue.

However, the global financial institution said despite the challenges, (Juba) authorities have taken encouraging steps to improve macroeconomic governance and liberalize the foreign exchange market.

‘The removal of most Forex restrictions and the authorities’ tight control of the money supply have made it possible for individuals and firms to buy and sell foreign currency at predictable and competitive rates since the start of the SMP in March 2021,” the Fund said.

“This led to a dramatic reduction in inflation, at a time when inflation was rising in many other countries.”

Meanwhile, the projection said Sub-Saharan Africa’s recovery has been abruptly interrupted, with this year’s growth expected to slow sharply by more than 1 percentage point to 3.6 percent.

This is due to a worldwide slowdown, tighter global financial conditions, and a dramatic pickup in global inflation spill into a region already wearied by an ongoing series of shocks.

The report also said rising food and energy prices are striking at the region’s most vulnerable, and public debt and inflation are at levels not seen in decades.

Link: https://www.imf.org/-/media/Images/IMF/Publications/REO/AFR/october-2022/English/AFR-REO-Table-OCT-2022.ashx#.Y1JRcpIpqMo.link.