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Sudan vs. Chad

Economy

SudanChad
Economy - overview

Sudan has experienced protracted social conflict, civil war, and, in July 2011, the loss of three-quarters of its oil production due to the secession of South Sudan. The oil sector had driven much of Sudan's GDP growth since 1999. For nearly a decade, the economy boomed on the back of rising oil production, high oil prices, and significant inflows of foreign direct investment. Since the economic shock of South Sudan's secession, Sudan has struggled to stabilize its economy and make up for the loss of foreign exchange earnings. The interruption of oil production in South Sudan in 2012 for over a year and the consequent loss of oil transit fees further exacerbated the fragile state of Sudan’s economy. Ongoing conflicts in Southern Kordofan, Darfur, and the Blue Nile states, lack of basic infrastructure in large areas, and reliance by much of the population on subsistence agriculture, keep close to half of the population at or below the poverty line.

Sudan was subject to comprehensive US sanctions, which were lifted in October 2017. Sudan is attempting to develop non-oil sources of revenues, such as gold mining and agriculture, while carrying out an austerity program to reduce expenditures. The world’s largest exporter of gum Arabic, Sudan produces 75-80% of the world’s total output. Agriculture continues to employ 80% of the work force.

Sudan introduced a new currency, still called the Sudanese pound, following South Sudan's secession, but the value of the currency has fallen since its introduction. Khartoum formally devalued the currency in June 2012, when it passed austerity measures that included gradually repealing fuel subsidies. Sudan also faces high inflation, which reached 47% on an annual basis in November 2012 but fell to about 35% per year in 2017.

Chad’s landlocked location results in high transportation costs for imported goods and dependence on neighboring countries. Oil and agriculture are mainstays of Chad’s economy. Oil provides about 60% of export revenues, while cotton, cattle, livestock, and gum arabic provide the bulk of Chad's non-oil export earnings. The services sector contributes less than one-third of GDP and has attracted foreign investment mostly through telecommunications and banking.

Nearly all of Chad’s fuel is provided by one domestic refinery, and unanticipated shutdowns occasionally result in shortages. The country regulates the price of domestic fuel, providing an incentive for black market sales.

Although high oil prices and strong local harvests supported the economy in the past, low oil prices now stress Chad’s fiscal position and have resulted in significant government cutbacks. Chad relies on foreign assistance and foreign capital for most of its public and private sector investment. Investment in Chad is difficult due to its limited infrastructure, lack of trained workers, extensive government bureaucracy, and corruption. Chad obtained a three-year extended credit facility from the IMF in 2014 and was granted debt relief under the Heavily Indebted Poor Countries Initiative in April 2015.

In 2018, economic policy will be driven by efforts that started in 2016 to reverse the recession and to repair damage to public finances and exports. The government is implementing an emergency action plan to counterbalance the drop in oil revenue and to diversify the economy. Chad’s national development plan (NDP) cost just over $9 billion with a financing gap of $6.7 billion. The NDP emphasized the importance of private sector participation in Chad’s development, as well as the need to improve the business environment, particularly in priority sectors such as mining and agriculture.

The Government of Chad reached a deal with Glencore and four other banks on the restructuring of a $1.45 billion oil-backed loan in February 2018, after a long negotiation. The new terms include an extension of the maturity to 2030 from 2022, a two-year grace period on principal repayments, and a lower interest rate of the London Inter-bank Offer Rate (Libor) plus 2% - down from Libor plus 7.5%. The original Glencore loan was to be repaid with crude oil assets, however, Chad's oil sales were hit by the downturn in the price of oil. Chad had secured a $312 million credit from the IMF in June 2017, but release of those funds hinged on restructuring the Glencore debt. Chad had already cut public spending to try to meet the terms of the IMF program, but that prompted strikes and protests in a country where nearly 40% of the population lives below the poverty line. Multinational partners, such as the African Development Bank, the EU, and the World Bank are likely to continue budget support in 2018, but Chad will remain at high debt risk, given its dependence on oil revenue and pressure to spend on subsidies and security.

GDP (purchasing power parity)
$177.4 billion (2017 est.)
$174.9 billion (2016 est.)
$169.8 billion (2015 est.)

note: data are in 2017 dollars

$28.62 billion (2017 est.)
$29.55 billion (2016 est.)
$31.58 billion (2015 est.)

note: data are in 2017 dollars

GDP - real growth rate
1.4% (2017 est.)
3% (2016 est.)
1.3% (2015 est.)
-3.1% (2017 est.)
-6.4% (2016 est.)
1.8% (2015 est.)
GDP - per capita (PPP)
$4,300 (2017 est.)
$4,400 (2016 est.)
$4,400 (2015 est.)

note: data are in 2017 dollars

$2,300 (2017 est.)
$2,500 (2016 est.)
$2,700 (2015 est.)

note: data are in 2017 dollars

GDP - composition by sector
agriculture: 39.6% (2017 est.)
industry: 2.6% (2017 est.)
services: 57.8% (2017 est.)
agriculture: 52.3% (2017 est.)
industry: 14.7% (2017 est.)
services: 33.1% (2017 est.)
Population below poverty line
46.5% (2009 est.)
46.7% (2011 est.)
Household income or consumption by percentage share
lowest 10%: 2.7%
highest 10%: 26.7% (2009 est.)
lowest 10%: 2.6%
highest 10%: 30.8% (2003)
Inflation rate (consumer prices)
32.4% (2017 est.)
17.8% (2016 est.)
-0.9% (2017 est.)
-1.1% (2016 est.)
Labor force
11.92 million (2007 est.)
5.654 million (2017 est.)
Labor force - by occupation
agriculture: 80%
industry: 7%
services: 13% (1998 est.)
agriculture: 80%
industry: 20% (2006 est.)
Unemployment rate
19.6% (2017 est.)
20.6% (2016 est.)

NA

Budget
revenues: 8.48 billion (2017 est.)
expenditures: 13.36 billion (2017 est.)
revenues: 1.337 billion (2017 est.)
expenditures: 1.481 billion (2017 est.)
Industries
oil, cotton ginning, textiles, cement, edible oils, sugar, soap distilling, shoes, petroleum refining, pharmaceuticals, armaments, automobile/light truck assembly, milling
oil, cotton textiles, brewing, natron (sodium carbonate), soap, cigarettes, construction materials
Industrial production growth rate
4.5% (2017 est.)
-4% (2017 est.)
Agriculture - products
cotton, groundnuts (peanuts), sorghum, millet, wheat, gum Arabic, sugarcane, cassava (manioc, tapioca), mangoes, papaya, bananas, sweet potatoes, sesame seeds; animal feed, sheep and other livestock
cotton, sorghum, millet, peanuts, sesame, corn, rice, potatoes, onions, cassava (manioc, tapioca), cattle, sheep, goats, camels
Exports
$4.1 billion (2017 est.)
$3.094 billion (2016 est.)
$2.464 billion (2017 est.)
$2.187 billion (2016 est.)
Exports - commodities
gold; oil and petroleum products; cotton, sesame, livestock, peanuts, gum Arabic, sugar
oil, livestock, cotton, sesame, gum arabic, shea butter
Exports - partners
UAE 55.5%, Egypt 14.7%, Saudi Arabia 8.8% (2017)
US 38.7%, China 16.6%, Netherlands 15.7%, UAE 12.2%, India 6.3% (2017)
Imports
$8.22 billion (2017 est.)
$7.48 billion (2016 est.)
$2.16 billion (2017 est.)
$1.997 billion (2016 est.)
Imports - commodities
foodstuffs, manufactured goods, refinery and transport equipment, medicines, chemicals, textiles, wheat
machinery and transportation equipment, industrial goods, foodstuffs, textiles
Imports - partners
UAE 12.7%, Egypt 10.6%, India 10.5%, Turkey 10.2%, Japan 7.6%, Saudi Arabia 6%, Germany 4.6% (2017)
China 19.9%, Cameroon 17.2%, France 17%, US 5.4%, India 4.9%, Senegal 4.5% (2017)
Debt - external
$56.05 billion (31 December 2017 est.)
$51.26 billion (31 December 2016 est.)
$1.724 billion (31 December 2017 est.)
$1.281 billion (31 December 2016 est.)
Exchange rates
Sudanese pounds (SDG) per US dollar -
6.72 (2017 est.)
6.14 (2016 est.)
6.14 (2015 est.)
6.03 (2014 est.)
5.74 (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.)
Fiscal year
calendar year
calendar year
Public debt
121.6% of GDP (2017 est.)
99.5% of GDP (2016 est.)
52.5% of GDP (2017 est.)
52.4% of GDP (2016 est.)
Reserves of foreign exchange and gold
$198 million (31 December 2017 est.)
$168.3 million (31 December 2016 est.)
$22.9 million (31 December 2017 est.)
$20.92 million (31 December 2016 est.)
Current Account Balance
-$4.811 billion (2017 est.)
-$4.213 billion (2016 est.)
-$558 million (2017 est.)
-$926 million (2016 est.)
GDP (official exchange rate)
$45.82 billion (2017 est.)
$9.872 billion (2017 est.)
Stock of direct foreign investment - at home
$25.47 billion (31 December 2016 est.)
$4.5 billion (2006 est.)
Market value of publicly traded shares

NA

NA

Commercial bank prime lending rate
13% (31 December 2017 est.)
12.5% (31 December 2016 est.)
15.5% (31 December 2017 est.)
15.5% (31 December 2016 est.)
Stock of domestic credit
$28.7 billion (31 December 2017 est.)
$20.22 billion (31 December 2016 est.)
$2.681 billion (31 December 2017 est.)
$2.387 billion (31 December 2016 est.)
Stock of narrow money
$18.82 billion (31 December 2017 est.)
$11.7 billion (31 December 2016 est.)
$1.397 billion (31 December 2017 est.)
$1.241 billion (31 December 2016 est.)
Stock of broad money
$18.82 billion (31 December 2017 est.)
$11.7 billion (31 December 2016 est.)
$1.397 billion (31 December 2017 est.)
$1.241 billion (31 December 2016 est.)
Taxes and other revenues
18.5% (of GDP) (2017 est.)
13.5% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)
-10.6% (of GDP) (2017 est.)
-1.5% (of GDP) (2017 est.)
GDP - composition, by end use
household consumption: 77.3% (2017 est.)
government consumption: 5.8% (2017 est.)
investment in fixed capital: 18.4% (2017 est.)
investment in inventories: 0.6% (2017 est.)
exports of goods and services: 9.7% (2017 est.)
imports of goods and services: -11.8% (2017 est.)
household consumption: 75.1% (2017 est.)
government consumption: 4.4% (2017 est.)
investment in fixed capital: 24.1% (2017 est.)
investment in inventories: 0.7% (2017 est.)
exports of goods and services: 35.1% (2017 est.)
imports of goods and services: -39.4% (2017 est.)
Gross national saving
12.1% of GDP (2017 est.)
13.1% of GDP (2016 est.)
12.2% of GDP (2015 est.)
15.5% of GDP (2017 est.)
7.5% of GDP (2016 est.)
13.3% of GDP (2015 est.)

Source: CIA Factbook