Conflict has devastated Sudan's economy, with real GDP contracting by an estimated 29.4% in 2023 and a further 14% in 2024, one of the steepest economic contractions in recent history, driven by the destruction of infrastructure concentrated in Khartoum—the country's economic and financial hub—widespread displacement, and the collapse of production and trade. The services sector, including healthcare, education, telecommunications, and finance, has been hard hit, while manufacturing and oil production have also suffered disruptions. Economic activity shows early signs of recovery in mid-2025, supported by returning internally displaced people and government efforts to reestablish institutional presence in key urban areas by the end of 2025.

Inflation surged to 170% year-on-year in 2024, driven by supply chain disruptions, declines in production, and soaring costs for housing, transport, and food. Inflation decelerated to 78.4% (y-o-y) in July 2025. Monthly inflation has declined for four months, driven by lower housing and food prices, although high prices continue to pressure households.

Government revenues collapsed from 10% of GDP (2022) to below 5% (2024) severely constraining the state's provision of essential services. Extreme poverty has risen from 23% to 59% (2022, 2024).

With peace, economic growth could rebound, though progress will be slow due to damaged infrastructure and limited resources. Inflation is expected to ease and exports may recover with improved security. Sustainable recovery will require resuming the Heavily Indebted Poor Countries (HIPC) Initiative to provide debt relief, preventing resurgence of excessive commodity subsidies, maintaining a unified exchange rate, and eliminating barriers to domestic and foreign trade. Unlocking the agriculture sector's potential through support for smallholder farmers, infrastructure rebuilding, and value chain development will be essential for both immediate food security and long-term economic stability.

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