While the economic situation in Sudan and South Sudan has improved following the resumption of oil production earlier this year, there are still significant challenges from a humanitarian and security perspective.
Thousands of internally displaced refugees - a result of intertribal conflicts in both countries - and the activities of rebels in the case of Sudan make normal economic activity difficult and pose significant downside risks for the countries' long-term trajectories from both an economic and political perspective.
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Major Forecast Changes
We have made a downward revision to South Sudan's inflation forecast, and now expect price growth to come in at -3.6% at the end of 2013, compared with our previous projection of 2.6%.
We have downgraded Sudan's 2014 real GDP forecast from 3.6% to 2.5% owing to security and price concerns, which we believe will persist into the new year.
Key Risks To Outlook
Political risk remains the most salient threat to our outlook, as a disruption of the fragile peace that has developed between Sudan and South Sudan could destroy the progress made over recent months.
If civil unrest - which has continued despite progress on other fronts - deteriorates into a wider conflict or another seriously disruptive event (not our core scenario), we would have to reassess many of our forecasts.
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"Sudan and South Sudan Business Forecast Report Q1 2014" is now available at Fast Market Research
Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001