The head of the department of economics at the University of Juba has revealed that the inflation rate in the country had risen in the last eleven months of the year 2021 adding that it remained stable.
(adsbygoogle = window.adsbygoogle || []).push({});Madut said that the stable prices were a result of the relative peace the country had been enjoying. He said that real GDP growth would be realized but due to floods and the destruction of crops, the country would by next year face severe food insecurity.
“We expect that despite the challenges that we are still experiencing with Covid-19 being one of them and flooding being another, we expect that at least according to the focus by IMF, the real GDP growth for the financial year 2021/2022 is projected to at least 1% and this will be boosted by a little bit higher oil prices, so there is a significant increase in the oil prices globally,” he said.
He said that the PFM reforms have so far played a pivotal role and advised that non-transparent oil advances for budget financing should be discontinued and that transparency in the publication of budget implementation updates should be ensured.
He added that there was the likelihood that prices would stabilize towards the middle of 2022 if the new Minister for Finance continues with the reforms started by his predecessors.
(adsbygoogle = window.adsbygoogle || []).push({});“I believe that towards the middle of 2022, there will be a general stabilization of prices because you have seen the current Minister of Finance has really continued with the reforms already started by his predecessors so, I believe if he continues implementing such reforms, then we will for sure experience some growth into the new year given the relatively increasing oil prices which right now stand at about 76.5 dollars per barrel,” Morris said.
“There is seemingly a strong will to continue implementing the reforms that are laid out in the peace agreement, so, if we continue implementing the peace agreement as it is, then we will have a little bit stabilized economy going into 2022.”
He advised further that funding the peace process would unlock better opportunities for the country. He added that investing in agriculture would enable the country to be self-reliant and settle the matter of food insecurity.
(adsbygoogle = window.adsbygoogle || []).push({});“The government has to think about investing in agriculture, as you know, 84% of our country, is good for farming. I believe if we put more money into agriculture, then it will help relieve the food insecurity across the country,” he said.
According to Morris, the non-oil revenues had increased from about 1.5 billion before the formation of the economic prices management committee, 3 billion by December 2020, 5 billion at the beginning of 2021 and expected to have risen roughly to about 10 billion at the end of 2021.
“We really have the capacity to make good use of our non-oil revenue, and if we close the leakages, then we will be able to finance most of our operations within the country,” he concluded.
Stable inflation
Early in December 2020, the Minister for Finance and Economic Planning Agak Achuil Lual revealed that financial reforms had slapped in the face the inflation leading to a slow inflation rate and stabilized the South Sudanese currency.
(adsbygoogle = window.adsbygoogle || []).push({});The financial reform basically was designed to transform the structures of financial systems by achieving a goal of a “liberalized market-oriented system within an appropriate regulatory framework.”
“As the government embarks on public financial management, the reforms have contributed significantly to harmonizing the exchange rate, stabilizing South Sudanese Pound and slowing down inflation,” the finance minister said.
He disclosed that the government would review the National Development Strategy (NDS) to acquaint themselves with the contents through the support of the United Nations (UN) before the document is approved by the Reconstituted Transitional National Legislative Assembly (R-TNLA).
“The review process resulted in a revised priority for the government for the period 2021 to 2024.” This presents a great opportunity for the United Nations member countries as you develop the next cooperation framework,” he said.
(adsbygoogle = window.adsbygoogle || []).push({});Agak said the economy was expected to recover by 3.2 per cent with the growth of oil and mining sectors estimated at 10.7%, services sector with 0.4% and agriculture with 2.5%.
Promises
During his swearing-in ceremony, Agak promised to champion reforms by limiting enemies of transparency and accountability.
He said that he would continue with the reforms started by his predecessor to ensure the economy is improved, drop prices of commodities and stabilize inflation rates.
This was in line with the advice from President Salva Kiir that he must fight corruption in his ministry, and ensure timely payment of salaries of civil servants and organized forces.
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