Title: Sudan's economy sinks as post-coup leadership searches for support

Jun 20, 2022 09:55AM ET

By: AnalysisWatch

An accelerated breakdown in services, including water and electricity, has led to Sudanese citizens feeling the cost of political gridlock following the military takeover last October.

The deterioration in living conditions came after the coup triggered the suspension of billions of dollars in international funding and at a time when the war in Ukraine was driving up the cost of key imports.

This has led to anti-military demonstrations that have occurred at least once a week for the past eight months, while increasing pressure on the military and civilian groups to reach a political agreement.

Since the coup, no prime minister has been appointed, ministers are in office only on an interim basis, and mediation attempts led by the United Nations and the African Union have yet to produce results.

Authorities say they will continue economic reforms initiated by a civilian-led government under International Monetary Fund (IMF) supervision in 2020 to reduce subsidies that are seen as inflationary.

The government has refrained from printing money to finance the deficit, and monthly government revenues have increased by two-thirds in the last six months to 150 billion Sudanese pounds ($264 million).

Sudan recently signed an agreement with the United Arab Emirates on a port and agricultural project that could lead to increased revenues.

Inflation, however, has caused spending to rise even faster. Monthly spending on public sector salaries alone totaled 180 billion pounds, up from 54 billion pounds at the beginning of the year, in addition to the rising cost of fuel, wheat, and other import