Sudan 

Sudan country policy

Policy established 16 June 1983

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Country class: 7

Sudan country facts

Atradius DSB  Economic Research
Country Report last updated: 23 May 2008
Country :  SUDAN 

Political Situation
Proxy War With Chad

Head of state
President is Lieutenant-General Omar Hassan Ahmed al-Bashir (since 1989, re-elected in 2005 for another 5-year term).

Form of government
Government dominated by National Congress Party (NCP).

Internal Economic Situation
Low Oil Price Slows Down Growth

General situation
Poor climatic conditions traditionally were a restriction to Sudan’s agricultural based economy. The economy was boosted by the discovery of oil and the end of the civil war. Oil reserves are much larger than previously thought and production will rise slightly over this year. However the oil price is structurally lower than in 2008 putting a break on growth. Domestic services and investment are largely dependant on oil revenues.

External Economic Situation
Large Current Account Deficit

Main sources of foreign exchange
Oil (96% of exports)

Main foreign markets
Japan (19%), China (68%), EU (4%), Saudi Arabia (2%).

Main expenses of foreign exchange
Capital goods, manufactured goods, wheat.
 
Balance of payments 
Lower oil price draws the trade balance into deficit. Capital inflows mainly from Arab countries and China.