Challenging Economic Landscape in South Sudan: 92% Living in Extreme Poverty

The World Bank’s 2024 report reveals that 92% of South Sudan’s population is living below the extreme poverty line, attributed to poor governance and high inflation. The findings underscore the critical economic challenges facing the nation, with significant implications for policymaking and public welfare.

According to a recent World Bank report, at least 92% of South Sudan’s population of approximately 11 million individuals were living below the extreme poverty line in 2024. This classification is defined as surviving on less than $2.15 per day. The findings were published in the 7th edition of the South Sudan Economic Monitor (SSEM) and present a dismal picture of the country’s economic situation.

The report attributes the alarming increase in poverty levels to several factors, including weak governance, poor management of oil revenues, and ineffective fiscal policies. Additionally, the report indicates that nearly 80% of the population is suffering from severe food insecurity, exacerbated by hyperinflation.

During the report’s launch in Juba, World Bank Group Country Manager Charles Undeland remarked on the significant economic decline experienced in South Sudan in recent years. He noted a contraction of approximately 30% in GDP during Fiscal Year 2025 and highlighted an inflation rate that soared to 139% as of August 2024, severely affecting the purchasing capacity of the populace.

In response to the report, Dr. Marial Dongrin Ater, South Sudan’s Minister of Finance and Planning, stated that the findings would be instrumental in guiding present and future policy initiatives. He emphasized the government’s commitment to restoring macroeconomic stability through prudent fiscal and monetary practices, which have begun to result in improved fiscal transparency and exchange rate stability.

Professor Robert Mayom Deng, Vice Chancellor of the University of Juba, cautioned that ongoing inflation continues to diminish household purchasing power. He stressed the need for sound macroeconomic policies to navigate the current crises, advocating for options that could establish a foundation for inclusive growth while addressing the pressing issue of poverty.

The World Bank report highlights the severe economic struggles faced by South Sudan, with a staggering 92% of the population living below the extreme poverty threshold in 2024. Key factors leading to this situation include weak governance and hyperinflation. Despite the grim circumstances, local leaders express a commitment to improving economic stability through targeted policies aimed at enhancing fiscal management and alleviating poverty.

Original Source: www.radiotamazuj.org