Micro-Economic Profile In Sudan

AT THE CLOSE OF 2004, SUDAN COULD LOOK BACK ON A 14-YEAR PERIOD,
OVER
WHICH GROWTH IN GROSS DOMESTIC Product (GDP) averaged 6.99%.
In being one of Africa’s brisk striding economies throughout the 1990s, Sudan
entered the new millennium positioned to attain that oft-elusive goal of developing
countries; sustained growth and development. Inflation has been a chronic problem,
though it was down to 7% by the end of 2002, but up slightly to 8.8% in 2003, averaging
8.5% over 2004. However, despite the positive statistical indications,the country remains
perilously dependent on primary product exports, to which crude oil has recently been added.
Sudan is currently at a very crucial point in its economic evolution and sustaining long term
growth and development will require modernizing its labour contribution to the global
economy while commensurately increasing per capita productivity value.Sudan, like most
countries in tropical Africa, built its post-independence economy on external credits and
domestic subsidies; the latter in the form of price supports, over-employment,protracted
government financing of unprofitable parastatals, and maintenance of fixed exchange rates
in the face of declining rates of conversion to foreign exchange. All this resulted in an inability
to meet debt repayment schedules, eventual national currency devaluations,dramatically reduced
purchasing power, deterioration in government services– particularly inheath and education–
and general economic recession.