World Bank Predicts Universal Poverty in South Sudan by 2025

The World Bank warns that South Sudan could see universal poverty by 2025, fueled by declining oil production, high inflation, and ongoing conflict. Over 76% of the population was below the poverty line in 2022, with extreme deprivation rising sharply. The government is implementing reforms to address these issues and diversify the economy.

The World Bank has projected that South Sudan will face universal poverty by 2025 due to various adverse factors including a decline in oil production and external shocks. According to the “South Sudan Economic Monitor” report, over 76% of the population lived below the national poverty line in 2022, indicating a 7% increase since 2015.

Charles Undeland, the World Bank Group country manager for South Sudan, attributed the deteriorating poverty conditions to prolonged economic decline precipitated by the disruption of oil production linked to the ongoing conflict in neighboring Sudan, the COVID-19 pandemic, and the repercussions of the war in Ukraine. He emphasized that inflation had surged to 139% in August 2024, drastically reducing the purchasing power of the populace and compounding economic woes caused by severe flooding.

Extreme deprivation, defined as households unable to secure basic food needs, showed a dramatic rise, starting from 70% in 2022, increasing to 84% in 2023, and reaching 92% in 2024. Undeland underscored that the nation’s economic future depends on achieving lasting peace and stability, calling for the complete implementation of the revitalized peace agreement established in 2018.

Minister of Finance and Planning, Marial Dongrin Ater, remarked that the government has embarked on reforms to enhance macroeconomic stability and bolster public financial management following the peace agreement. Recognizing the vulnerability stemming from reliance on oil revenues, efforts have been made to diversify the economy, including increased support for agriculture, trade facilitation initiatives, and investment in critical infrastructure as outlined in the 2024/2025 fiscal budget.

In summary, the projected universal poverty in South Sudan by 2025 underlines the critical economic challenges the nation faces. High inflation, extreme deprivation, and dependency on oil revenues highlight the urgency for comprehensive reforms and the restoration of peace. Continued efforts towards economic diversification and infrastructural investment are essential for improving the livelihoods of the South Sudanese people.

Original Source: www.lokmattimes.com