According to the World Economic Outlook database, government debt remains at high levels, and is expected to reach 169.1% of GDP during 2026, compared to an average of 44.7% in the Middle East.
This indicator measures the size of debt compared to the ability of a country’s economy to generate income, and not the absolute value of debt. Its rise means increased pressure on public finances and the cost of borrowing, in addition to a decline in the government’s ability to finance services and investments.
The Sudanese crisis worsened as a result of the contraction in production, the disruption of major economic sectors, and the decline in tax revenues and commercial and investment activity. An increasing portion of state resources has also been directed to financing military operations at the expense of basic services and development.
During the period of the transitional government headed by Abdullah Hamdok, Sudan had made progress within the Heavily Indebted Poor Countries Initiative (HIPC), which was paving the way for the cancellation of about 80% of its external debt. However, the October 2021 coup and the subsequent outbreak of war stopped this path.
Since the start of the fighting between the Sudanese army and the Rapid Support Forces, large parts of the economic structure have been destroyed, while millions of people have been displaced and sought refuge, and state institutions and services have declined, amid a humanitarian crisis that the United Nations describes as the worst in the world. (Sky News)
