In 2024, 92% of South Sudan’s population lived below the extreme poverty line, as stated in a new World Bank report. The causes include poor governance and substantial inflation, with inflation rates soaring to 139%. The report aims to inform policy interventions to stabilize the economy and reduce poverty.
In 2024, a staggering 92% of South Sudan’s 11 million population lived below the extreme poverty threshold, as reported by the World Bank. This situation indicates that these individuals survive on less than $2.15 per day. This alarming statistic was presented in the World Bank’s 7th edition of the South Sudan Economic Monitor (SSEM), which was launched in Juba. The report attributes the increase in poverty to weak governance, poor oil revenue management, and ineffective fiscal policies.
The report, titled “A Pathway to Overcome the Crisis,” also indicates that hyperinflation and significant food insecurity affect nearly 80% of the population. During the event, Charles Undeland, the World Bank Group Country Manager, emphasized the substantial economic decline in recent years, highlighting an expected 30% contraction in GDP for Fiscal Year 2025. Inflation levels reach an unprecedented 139% as of August 2024, severely diminishing the purchasing power of South Sudanese citizens.
Finance and Planning Minister Dr. Marial Dongrin Ater stated that the report’s insights would inform current and upcoming policy measures. He reaffirmed the government’s commitment to restoring macroeconomic stability through diligent fiscal and monetary strategies, which have improved exchange rate stability and fiscal transparency.
Professor Robert Mayom Deng, Vice Chancellor of the University of Juba, noted the critical role of inflation in diminishing household purchasing power. He remarked on the report’s identification of necessary macroeconomic policies and suggested approaches for fostering sustainable, inclusive growth.
The South Sudan Economic Monitor is an annual series by the World Bank that evaluates the key economic trends, forecasts, and policies impacting South Sudan, serving as a vital resource for understanding the nation’s economic landscape.
The World Bank’s recent report unveils a troubling economic landscape in South Sudan, where 92% of the population faces extreme poverty. Contributing factors include weak governance and hyperinflation, significantly impacting living conditions. The insights aim to guide future policies towards achieving economic stability, ultimately working to alleviate poverty and foster inclusive growth.
Original Source: www.radiotamazuj.org
