🇸🇩 Sudan Faces Economic Collapse as Civil War Devastates Output and Currency

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Key Takeaways

• Sudan is ranked among the poorest countries in the world in 2024, according to Global Finance Magazine (July 27, 2026).
• The country remains in a state of civil war, per the Council on Foreign Relations Global Conflict Tracker (July 29, 2026).
• Neighboring South Sudan’s central bank governor was removed by presidential decree, as reported by Reuters (July 30, 2026).
• The African Development Bank urged South Sudan to diversify its economy to withstand external shocks, per Radio Tamazuj (July 29, 2026).
• Violent extremism continues to pose a threat across the Sahel region, which includes parts of Sudan, according to the Council on Foreign Relations (July 29, 2026).

The Data

KHARTOUM — Sudan’s economy is in a state of acute crisis, with the country ranked among the poorest in the world in 2024, according to Global Finance Magazine (July 27, 2026). The ongoing civil war, tracked by the Council on Foreign Relations (July 29, 2026), has shattered economic stability and disrupted nearly all productive activity.

Inflation data remains largely unavailable due to the conflict, but the collapse of the Sudanese pound (SDG) against major currencies has driven consumer prices sharply higher. The Central Bank of Sudan has struggled to maintain monetary control as the war has severed its ability to operate normally across the country.

The Central Bank of Sudan has not issued a clear policy rate in recent months, reflecting the breakdown of regular monetary policy operations. The next formal policy decision is uncertain, as the institution’s capacity to manage the currency and banking system is severely constrained by the conflict.

Gross domestic product (GDP) growth has turned deeply negative as the civil war has destroyed infrastructure, halted agriculture, and closed factories. The oil sector, once a key revenue source, has been disrupted, while gold production has also been impacted by insecurity and the fragmentation of the country.

Labor market data is not being collected reliably due to the conflict, but unemployment is estimated to be extremely high as millions of people have been displaced from their jobs and homes. Formal employment has collapsed, forcing many families into subsistence activities or dependence on aid.

Conflict Devastates Economic Infrastructure

The civil war, as documented by the Council on Foreign Relations (July 29, 2026), is the single most important factor driving Sudan’s economic collapse. The fighting has not only destroyed physical infrastructure but has also fractured the country into competing zones of control, each with its own economic reality.

The conflict has disrupted trade routes, banking networks, and the delivery of basic goods. The central government in Khartoum has lost control over large parts of the country, meaning tax revenues have plummeted and state services have collapsed. The result is a fragmented economy where barter and informal markets are increasingly replacing formal financial transactions.

What This Means

For Sudanese households, the war has triggered a catastrophic cost-of-living crisis. The collapse of the SDG has made imported food and medicine unaffordable for most families, while domestic food production has fallen sharply due to fighting in agricultural areas. Millions are now dependent on humanitarian aid for survival.

For businesses, the environment is nearly unworkable. Borrowing costs are prohibitive where credit exists at all, and input prices have soared due to supply chain disruptions and currency depreciation. Most formal enterprises have either shut down or are operating at a fraction of their pre-war capacity, with the outlook hinging entirely on the trajectory of the conflict.

Outlook

The near-term economic outlook for Sudan is bleak and entirely dependent on the course of the civil war. There are no scheduled data releases from the Central Bureau of Statistics, as the agency cannot operate effectively in the current environment. The next central bank meeting is unlikely to produce meaningful policy changes given the institutional paralysis.

Regional pressure is also mounting, as the African Development Bank’s warning to South Sudan about economic diversification (July 29, 2026) highlights the broader instability in the region. The removal of South Sudan’s central bank governor by presidential decree (Reuters, July 30, 2026) underscores the political volatility that continues to undermine economic governance across the wider area.

Analysts see no path to economic recovery in Sudan without a durable political settlement and a major international reconstruction effort.

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Data sourced from Central Bureau of Statistics (Sudan) and Central Bank of Sudan (Sudan). Analysis by Economic Pulse Data Team.

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Edited by Editorial Desk. Fact-checked by Editorial Desk. This is analysis, not financial advice.