The economic implications of Sudan conflict

The war in Sudan is closing on 9 months, and the direct and indirect results of the conflict are severe and grave, especially the economic side of the conflict, according to ifpri report

As the conflict continues, inflation is expected to continue rising (WFP, 2023a) and the economy will
contract, triggered by the disruptions to production (mainly in industrial and gold mining), trade (mainly
imports of food and exports of gold and livestock), job loss (mainly in Khartoum state but also in most of
western and southern states), investments, and human capital loss due to displacement and migration.
The war has already resulted in decreased availability of essential food items in local markets, causing
a surge in food prices (Abushama et al., 2023; Kirui et al., 2023). Since April 15th, prices of basic
commodities such as bottled water, food, and fuel have increased by 40-60 percent in conflict-affected
areas (WFP 2023a). In May the WFP local food basket cost increased by 18 percent from the April
level, followed by 8.7 percent increase in June (WFP, 2023b; WFP, 2023c).

Household remittances are increasing significantly during the conflict. With 55 percent of the population
living in areas that have been affected by the conflict, a significant portion of them have lost their jobs
and became dependent on their savings and remittances as the main sources of income. Remittances
are expected to further increase as the conflict continues.