Publication: Sudan Economic Update, May 2025: The Economic and Social Consequences of the Conflict - Charting a Path to Recovery
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2025-06-09
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2025-06-09
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Almost two years into the conflict that began in April 2023, Sudan remains in a deepening crisis with widespread social and economic consequences. The country is facing a severe humanitarian crisis with the ongoing conflict claiming more than 61,000 lives in Khartoum state alone between April 2023 and June 2024. The conflict has led to the world’s largest displacement, with 12.9 million forcibly displaced, including 8.9 million internally and 3.8 million in neighboring countries including Chad, Egypt and South Sudan. Military operations have caused extensive damage to residential housing across Sudan, particularly in Khartoum, and forced 31 percent of urban households to relocate to other states. The report is structured as follows: part I covers the recent macroeconomic developments; part II focuses on the agriculture sector as a main vehicle for alleviating the impact of the conflict and supporting recovery; and part III concludes by discussing the way forward and offering policy options to support post-conflict recovery efforts.
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“World Bank. 2025. Sudan Economic Update, May 2025: The Economic and Social Consequences of the Conflict - Charting a Path to Recovery. © World Bank. http://hdl.handle.net/10986/43314 License: CC BY-NC 3.0 IGO.”
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Publication Sudan - Stabilization and Reconstruction : Country Economic Memorandum, Volume 1. Main Text(Washington, DC, 2003-06-30)This Country Economic Memorandum is the first economic report in a decade. It gives priority to updating knowledge about the evolution of social and economic developments during the 1990s. It reviewareas of progress in macroeconomic reforms and the lack of success in governance and institutional reforms. Substantial reforms were undertaken in this period , but the civil war continued to have a serious negative impact on Sudan's people and its economic prospects. While the results of the reforms have been promising, particularly in the area of macroeconomic stabilization and liberalization, the distribution of economic wealth needs to improve. Although there has not been any national household survey since 1978, social indicators point to low levels of welfare throughout Sudan, with some indicators well below those in Sub-Saharan Africa. among the many issues facing the Sudanese economy are these: There has been high growth but skewed distribution. Stabilization has been costly in social terms: expenditures were cut by more than 50 percent relative to gross domestic product (GDP), causing considerable reductions in social services and infrastructure development. Key services were decentralized, delegated to states and local communities, which had neither the revenues nor the administrative capacity for these tasks. High poverty rates persist. Social inequalities threaten to undermine macroeconomic stability. Moreover, the civil war was costly in terms of human suffering. Millions are internally displaced, there are almost a million refugees in camps in neighboring countries, the death toll is estimated at 2 million, and warring armies continue to claim substantial resources. However, peace negotiations look encouraging. For peace to be sustained, it must be accompanied by economic and governance reforms, and a formula for equitable sharing of resources and power must be found for resolving the major root causes of decades of civil war. Reconstruction and development needs are enormous and will require external financing. Even after debt rescheduling, additional resources will be needed and the Sudan will urgently be expected to put measures in place to improve public resources management. As for the major sectors, infrastructure needs major rehabilitation and development, agricultural reforms need to be pursued, improved social services are a high priority, and war-affected areas face special difficulties like food insecurity. The needs of women require special attention, particularly in those parts of the country where women suffer severely from the violence and lawlessness that emerged as a result of the prolonged civil war. Many are widows and many have suffered also from rape, insecurity, and other traumas. the average ratio iof adult women to adult men is two to one in war-affected areas in southern Sudan, and only one out of ten women is literate,Publication Sudan - Stabilization and Reconstruction : Country Economic Memorandum, Volume 2. Statistical Appendices(Washington, DC, 2003-06-30)This Country Economic Memorandum is the first economic report in a decade. It gives priority to updating knowledge about the evolution of social and economic developments during the 1990s. It reviewareas of progress in macroeconomic reforms and the lack of success in governance and institutional reforms. Substantial reforms were undertaken in this period , but the civil war continued to have a serious negative impact on Sudan's people and its economic prospects. While the results of the reforms have been promising, particularly in the area of macroeconomic stabilization and liberalization, the distribution of economic wealth needs to improve. Although there has not been any national household survey since 1978, social indicators point to low levels of welfare throughout Sudan, with some indicators well below those in Sub-Saharan Africa. among the many issues facing the Sudanese economy are these: There has been high growth but skewed distribution. Stabilization has been costly in social terms: expenditures were cut by more than 50 percent relative to gross domestic product (GDP), causing considerable reductions in social services and infrastructure development. Key services were decentralized, delegated to states and local communities, which had neither the revenues nor the administrative capacity for these tasks. High poverty rates persist. Social inequalities threaten to undermine macroeconomic stability. Moreover, the civil war was costly in terms of human suffering. Millions are internally displaced, there are almost a million refugees in camps in neighboring countries, the death toll is estimated at 2 million, and warring armies continue to claim substantial resources. However, peace negotiations look encouraging. For peace to be sustained, it must be accompanied by economic and governance reforms, and a formula for equitable sharing of resources and power must be found for resolving the major root causes of decades of civil war. Reconstruction and development needs are enormous and will require external financing. Even after debt rescheduling, additional resources will be needed and the Sudan will urgently be expected to put measures in place to improve public resources management. As for the major sectors, infrastructure needs major rehabilitation and development, agricultural reforms need to be pursued, improved social services are a high priority, and war-affected areas face special difficulties like food insecurity. The needs of women require special attention, particularly in those parts of the country where women suffer severely from the violence and lawlessness that emerged as a result of the prolonged civil war. Many are widows and many have suffered also from rape, insecurity, and other traumas. the average ratio iof adult women to adult men is two to one in war-affected areas in southern Sudan, and only one out of ten women is literate,Publication Yemen Economic Monitor, Spring 2025(Washington, DC: World Bank, 2025-06-04)The Yemen Economic Monitor provides an update on key economic developments and policies over the past six months. It also presents findings from recent World Bank work on Yemen. While domestic tensions persist, with the Houthi movement continuing to blockade the Internationally Recognized Government (IRG) oil exports, Yemen also faces growing external risks. Ceasefire agreements in the Middle East in January 2025 had raised hopes for greater regional stability. However, renewed military tensions in the Red Sea since mid-March have undermined this fragile progress. In parallel, the U.S. designation of the Houthi movement as a Foreign Terrorist Organization (FTO) has introduced new compliance requirements, which are already affecting Yemen’s banking sector. Meanwhile, growing concerns over the detentions of humanitarian staff by the Houthi movement have led several donors to scale back or redirect assistance. These shifts risk deepening Yemen’s already severe economic and social challenges. Two-thirds of the population have inadequate food consumption, and poverty is widespread. Against this backdrop, the outlook remains bleak. Yemen’s future hinges on its ability to secure lasting peace, rebuild, and implement critical reforms to strengthen state institutions and restore both domestic and international business confidence—essential for attracting investment and fostering growth.Publication Assessment of Development Needs of Refugees and Internally Displaced Persons in Eastern Sudan(Washington, DC, 2011-02-11)East Sudan has received a continuous influx of internally displaced persons (IDPs) and refugees over the last forty years. Mass influxes were witnessed during years when the region experienced natural catastrophes as droughts and floods, or an escalation of tensions and conflict in neighboring countries, mainly Eritrea and Ethiopia. Presently there is still a steady but smaller in numbers influx of refugees, mostly from Eritrea, but with an apparent change in their social composition and expectations. Present day internal population movements relate to more conventional forms of migration within Sudan, that is, households in search of work and economic opportunities. Still, the situation of the large number of IDPs that moved to the area over 15 years ago and are living in camps is precarious and needs urgent attention. Presently there are not the basic conditions required to provide a durable solution to the refugees in a protracted situation in eastern Sudan. To a large extent that also applies to IDPs with long permanence in camps; there are not conditions to achieve self-reliance by most of the displaced population given the situation of their locations in eastern Sudan in terms of natural environment and its capacity to support sustainable agriculture and other urban and rural economic activities. Within the overall mission of the World Bank, its strategic objective in contributing towards the durable solution of forced displacement situations is to bring the affected countries and displaced population back to the path of peace and development, enabling the application of pro-poor policies and fostering economic growth. Under these conditions, the World Bank will be in a better position to engage the affected countries through its regular operations.Publication Morocco Economic Update, Winter 2025(Washington, DC: World Bank, 2025-04-03)Despite the drought causing a modest deceleration of overall GDP growth to 3.2 percent, the Moroccan economy has exhibited some encouraging trends in 2024. Non-agricultural growth has accelerated to an estimated 3.8 percent, driven by a revitalized industrial sector and a rebound in gross capital formation. Inflation has dropped below 1 percent, allowing Bank al-Maghrib to begin easing its monetary policy. While rural labor markets remain depressed, the economy has added close to 162,000 jobs in urban areas. Morocco’s external position remains strong overall, with a moderate current account deficit largely financed by growing foreign direct investment inflows, underpinned by solid investor confidence indicators. Despite significant spending pressures, the debt-to-GDP ratio is slowly declining.
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