Report: Sudan growth at 5.8 per cent, WTO membership in long range
WASHINGTON, Dec 19, 2003 (dpa) — The International Monetary Fund on Friday praised Sudan for improvements in its finance and foreign exchange systems and said that Africa’s largest country is on a five-year track to join the World Trade Organization.
A long-negotiated peace treaty between the government and rebels was expected to end decades of conflict by year’s end, which would further accelerate Sudan’s growth and economic development, the IMF said.
Donors and creditors have formed a support group awaiting final peace settlement to help mobilize financing for Sudan to “clear its arrears and reduce its heavy debt burden”, the IMF said.
The report, called a “consultation”, was a periodic survey carried out in many countries by the IMF.
Gross domestic product (GDP) growth was expected at 5.8 per cent for the current year, up from last year’s 5.5 per cent and led by the non-oil sector. Oil sector growth slowed down to 13.8 per cent this year, compared with 24.7 per cent last year, the IMF said.
Growth however still lagged behind the expected 7 per cent inflation rate. Inflation has been wrestled down from 10.7 per cent two years ago, with liquidity mopped up through open market operations in securities and foreign exchange, the IMF said.
“Sudan switched to indirect monetary management and broad money targeting, introduced a managed-float exchange rate system and began strengthening the fiscal regime,” the IMF said. “These reforms have helped reinforce economic stability.”
The country is also making efforts “to increase the transparency of the oil sector financial accounts”, the IMF said.
Average tariff rates are 22.7 per cent, but the IMF found Sudan’s trade regime was in principle “relatively open” and compared “favourably with that of advanced economies”.
“Progress is being achieved with regard to Sudan’s application for World Trade Organization accession and the authorities expect to conclude negotiations in five years,” the IMF said.
Earlier this year, Sudan signed agreements with the IMF to keep its exchange system free from restrictions relating to current account transactions.
International reserves have grown from 45 million dollars in 2001 to 415 million dollars – or 1.8 months of imports – by late June.