JUBA, March 13 (Xinhua) -- South Sudan is projected to experience universal poverty in 2025, driven by a combination of factors such as a decline in oil production and external shocks, the World Bank said in a report released on Thursday.
The report, titled "South Sudan Economic Monitor," notes that more than three-quarters of the South Sudanese population (76 percent) lived below the national poverty line in 2022, representing a 7-percentage-point increase since 2015.
Charles Undeland, World Bank Group country manager for South Sudan, said in the South Sudanese capital of Juba during the launch of the report that the worsening poverty levels are a result of years of economic decline caused by the disruption of oil production due to the ongoing war in neighboring Sudan, COVID-19, and the indirect impact of the war in Ukraine.
"Inflation is very high, reaching 139 percent in August 2024, which, of course, is eroding the purchasing power of all South Sudanese," Undeland said, adding that years of heavy flooding have also negatively impacted the economy.
According to the report, extreme deprivation, defined as the share of households unable to afford even basic food, rose 4 percentage points to 70 percent in 2022, then increased to 84 percent in 2023 and 92 percent in 2024.
Undeland stressed that South Sudan's economic prospects hinge on the full restoration of peace and stability through the full implementation of the 2018 revitalized peace agreement.
South Sudanese Minister of Finance and Planning Marial Dongrin Ater noted that since the signing of the peace agreement, the government has initiated reforms aimed at improving macroeconomic conditions and strengthening public financial management.
"Recognizing the vulnerability due to our heavy reliance on oil revenues, we have taken concrete steps to broaden our economic base. These include expanding support for agriculture, enhancing trade facilitation, and promoting investment in critical infrastructure as reflected in the 2024/2025 fiscal year budget," he added.
