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South Sudan vs. Central African Republic

Economy

South SudanCentral African Republic
Economy - overview

Industry and infrastructure in landlocked South Sudan are severely underdeveloped and poverty is widespread, following several decades of civil war with Sudan. Continued fighting within the new nation is disrupting what remains of the economy. The vast majority of the population is dependent on subsistence agriculture and humanitarian assistance. Property rights are insecure and price signals are weak, because markets are not well-organized.

South Sudan has little infrastructure - about 10,000 kilometers of roads, but just 2% of them paved. Electricity is produced mostly by costly diesel generators, and indoor plumbing and potable water are scarce, so less than 2% of the population has access to electricity. About 90% of consumed goods, capital, and services are imported from neighboring countries - mainly Uganda, Kenya and Sudan. Chinese investment plays a growing role in the infrastructure and energy sectors.

Nevertheless, South Sudan does have abundant natural resources. South Sudan holds one of the richest agricultural areas in Africa, with fertile soils and abundant water supplies. Currently the region supports 10-20 million head of cattle. At independence in 2011, South Sudan produced nearly three-fourths of former Sudan's total oil output of nearly a half million barrels per day. The Government of South Sudan relies on oil for the vast majority of its budget revenues, although oil production has fallen sharply since independence. South Sudan is one of the most oil-dependent countries in the world, with 98% of the government's annual operating budget and 80% of its gross domestic product (GDP) derived from oil. Oil is exported through a pipeline that runs to refineries and shipping facilities at Port Sudan on the Red Sea. The economy of South Sudan will remain linked to Sudan for some time, given the existing oil infrastructure. The outbreak of conflict in December 2013, combined with falling crude oil production and prices, meant that GDP fell significantly between 2014 and 2017. Since the second half of 2017 oil production has risen, and is currently about 130,000 barrels per day.

Poverty and food insecurity has risen due to displacement of people caused by the conflict. With famine spreading, 66% of the population in South Sudan is living on less than about $2 a day, up from 50.6% in 2009, according to the World Bank. About 80% of the population lives in rural areas, with agriculture, forestry and fishing providing the livelihood for a majority of the households. Much of rural sector activity is focused on low-input, low-output subsistence agriculture.

South Sudan is burdened by considerable debt because of increased military spending and high levels of government corruption. Economic mismanagement is prevalent. Civil servants, including police and the military, are not paid on time, creating incentives to engage in looting and banditry. South Sudan has received more than $11 billion in foreign aid since 2005, largely from the US, the UK, and the EU. Inflation peaked at over 800% per year in October 2016 but dropped to 118% in 2017. The government has funded its expenditures by borrowing from the central bank and foreign sources, using forward sales of oil as collateral. The central bank's decision to adopt a managed floating exchange rate regime in December 2015 triggered a 97% depreciation of the currency and spawned a growing black market.

Long-term challenges include rooting out public sector corruption, improving agricultural productivity, alleviating poverty and unemployment, improving fiscal transparency - particularly in regard to oil revenues, taming inflation, improving government revenues, and creating a rules-based business environment.

Subsistence agriculture, together with forestry and mining, remains the backbone of the economy of the Central African Republic (CAR), with about 60% of the population living in outlying areas. The agricultural sector generates more than half of estimated GDP, although statistics are unreliable in the conflict-prone country. Timber and diamonds account for most export earnings, followed by cotton. Important constraints to economic development include the CAR's landlocked geography, poor transportation system, largely unskilled work force, and legacy of misdirected macroeconomic policies. Factional fighting between the government and its opponents remains a drag on economic revitalization. Distribution of income is highly unequal and grants from the international community can only partially meet humanitarian needs. CAR shares a common currency with the Central African Monetary Union. The currency is pegged to the Euro.

Since 2009, the IMF has worked closely with the government to institute reforms that have resulted in some improvement in budget transparency, but other problems remain. The government's additional spending in the run-up to the 2011 election worsened CAR's fiscal situation. In 2012, the World Bank approved $125 million in funding for transport infrastructure and regional trade, focused on the route between CAR's capital and the port of Douala in Cameroon. In July 2016, the IMF approved a three-year extended credit facility valued at $116 million; in mid-2017, the IMF completed a review of CAR's fiscal performance and broadly approved of the government's management, although issues with revenue collection, weak government capacity, and transparency remain. The World Bank in late 2016 approved a $20 million grant to restore basic fiscal management, improve transparency, and assist with economic recovery.

Participation in the Kimberley Process, a commitment to remove conflict diamonds from the global supply chain, led to a partially lifted the ban on diamond exports from CAR in 2015, but persistent insecurity is likely to constrain real GDP growth.

GDP (purchasing power parity)$20.01 billion (2017 est.)

$21.1 billion (2016 est.)

$24.52 billion (2015 est.)

note: data are in 2017 dollars
$4.483 billion (2019 est.)

$4.354 billion (2018 est.)

$4.195 billion (2017 est.)

note: data are in 2017 dollars
GDP - real growth rate-5.2% (2017 est.)

-13.9% (2016 est.)

-0.2% (2015 est.)
4.3% (2017 est.)

4.5% (2016 est.)

4.8% (2015 est.)
GDP - per capita (PPP)$1,600 (2017 est.)

$1,700 (2016 est.)

$2,100 (2015 est.)

note: data are in 2017 dollars
$945 (2019 est.)

$933 (2018 est.)

$913 (2017 est.)

note: data are in 2017 dollars
Population below poverty line76.4% (2016 est.)62% NA (2008 est.)
Inflation rate (consumer prices)187.9% (2017 est.)

379.8% (2016 est.)
2.7% (2019 est.)

1.6% (2018 est.)

4.2% (2017 est.)
Distribution of family income - Gini index46 (2010 est.)43.6 (2003 est.)

61.3 (1993)
Budgetrevenues: 259.6 million (FY2017/18 est.)

expenditures: 298.6 million (FY2017/18 est.)
revenues: 282.9 million (2017 est.)

expenditures: 300.1 million (2017 est.)
Agriculture - productsmilk, sorghum, vegetables, cassava, goat milk, fruit, beef, sesame seed, sheep milk, muttoncassava, yams, groundnuts, taro, bananas, sugar cane, beef, maize, plantains, milk
Exports$1.13 billion (2016 est.)$113.7 million (2017 est.)

$101.5 million (2016 est.)
Exports - commoditiescrude petroleum, gold, forage crops, lumber, insect resins (2019)lumber, gold, diamonds, sea vessels, cocoa paste (2019)
Exports - partnersChina 88%, United Arab Emirates 5% (2019)China 41%, United Arab Emirates 19%, France 7% (2019)
Imports$3.795 billion (2016 est.)$393.1 million (2017 est.)

$342.2 million (2016 est.)
Imports - commoditiescars, delivery trucks, packaged medicines, foodstuffs, clothing and apparel (2019)refined petroleum, packaged medicines, natural gas, broadcasting equipment, second-hand clothing (2019)
Imports - partnersUnited Arab Emirates 37%, Kenya 18%, China 18% (2019)India 18%, France 12%, United States 11%, China 9%, Netherlands 7%, Belgium 7%, Malta 6% (2019)
Exchange ratesSouth Sudanese pounds (SSP) per US dollar -

0.885 (2017 est.)

0.903 (2016 est.)

0.9214 (2015 est.)

0.885 (2014 est.)

0.7634 (2013 est.)
Cooperation Financiere en Afrique Centrale francs (XAF) per US dollar -

605.3 (2017 est.)

593.01 (2016 est.)

593.01 (2015 est.)

591.45 (2014 est.)

494.42 (2013 est.)
Public debt62.7% of GDP (2017 est.)

86.6% of GDP (2016 est.)
52.9% of GDP (2017 est.)

56% of GDP (2016 est.)
Reserves of foreign exchange and gold$73 million (31 December 2016 est.)$304.3 million (31 December 2017 est.)

$252.5 million (31 December 2016 est.)
Current Account Balance-$154 million (2017 est.)

$39 million (2016 est.)
-$163 million (2017 est.)

-$97 million (2016 est.)
GDP (official exchange rate)$3.06 billion (2017 est.)$1.937 billion (2017 est.)
Ease of Doing Business Index scoresOverall score: 34.6 (2020)

Starting a Business score: 71 (2020)

Trading score: 26.2 (2020)

Enforcement score: 59 (2020)
Overall score: 35.6 (2020)

Starting a Business score: 63.2 (2020)

Trading score: 52.4 (2020)

Enforcement score: 31.4 (2020)
Taxes and other revenues8.5% (of GDP) (FY2017/18 est.)14.6% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-1.3% (of GDP) (FY2017/18 est.)-0.9% (of GDP) (2017 est.)
GDP - composition, by end usehousehold consumption: 34.9% (2011 est.)

government consumption: 17.1% (2011 est.)

investment in fixed capital: 10.4% (2011 est.)

exports of goods and services: 64.9% (2011 est.)

imports of goods and services: -27.2% (2011 est.)
household consumption: 95.3% (2017 est.)

government consumption: 8.5% (2017 est.)

investment in fixed capital: 13.7% (2017 est.)

investment in inventories: 0% (2017 est.)

exports of goods and services: 12% (2017 est.)

imports of goods and services: -29.5% (2017 est.)
Gross national saving3.6% of GDP (2017 est.)

18.7% of GDP (2016 est.)

7.4% of GDP (2015 est.)
5.4% of GDP (2017 est.)

8.2% of GDP (2016 est.)

4.2% of GDP (2015 est.)

Source: CIA Factbook