Sudan was suffering economically even before it lost South Sudan, and now the economic climate is worse. President Bashir is pushing oil and food production – and reaching out to China – to fix the situation.
Mohamed Nureldin Abdallah/Reuters
Even before South Sudan became independent in July of this year, (North) Sudan was suffering from high inflation and other economic woes. Inflation rates began to climb in the winter of 2010-2011 (.pdf, see figure 6), driven in part by rising costs for staple foods. The loss of the South (which produced around 75 percent of the unified Sudan’s oil) compounded Sudan’s economic problems, and inflation has remained high (around 20 percent), though it fell slightly in October. Continued violence and uncertainty in border areas and in Darfur has no doubt added to economic volatility.