IMF: Sudan’s growth prospects constrained by sanctions

Published 03.06.2016 00:00
Updated 03.06.2016 22:54

The IMF has said that economic sanctions imposed on Sudan have constrained the growth of the country's economy.

Sudan has been subject to U.S. sanctions since 1997 and is on an American blacklist of countries accused of sponsoring international terrorism since 1993.

The IMF said on Thursday that Sudan had recovered from the economic shock caused by the secession of South Sudan five years ago.

Sudan lost three quarters of its oil revenues after the separation in 2011.

Eric Mottu, IMF head of team, said in a statement that Sudan had made "remarkable progress" toward macroeconomic stability and growth. Mottu added that the five-year reform plan adopted by the Sudanese government in 2011 could contain the fiscal deficit, slow money growth, reduce inflation and support growth.

"Despite these efforts, growth prospects are constrained by sanctions and continued large macroeconomic imbalances. The breakdown of correspondent bank relations due to de-risking associated with economic and financial sanctions weighed on trade, investment and growth'' he added.

He further called on the Sudanese government to engage with international partners to secure comprehensive support for debt relief and the lifting of sanctions.

Sudan is also eligible for debt relief under the Heavily Indebted Poor Countries initiative.

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