South Sudan heavily depends on export of oil, the reopening of some damaged oil wells following the peace agreement in 2018 pushed up daily oil production (export) by about 20 percent in February 2019. Despite the increase, access of hard currency to importers from banks has not yet started, and therefore traders still depend on the informal market. The oil revenue will be impacted by the collapse of the world oil prices amidst the spread of COVID19 across several important players in the world economy. Plummeting international commodity prices translate into heavy losses in export earnings, this means the trade deficit of over 2 billion SSP will widen. The decrease in oil prices will also trigger currency depreciation and an adjustment in the balance of payments.

Download