Data issued by the International Monetary Fund (IMF) showed that Sudan recorded the highest government debt-to-GDP (Gross Domestic Product) ratio amongst Arab countries in 2025. This indicator reflected the escalating financial pressures affecting the Sudanese economy as the war continues and economic activity as well as public revenues decline as well.<\/p>\n\n\n\n
According to the IMF’s World Economic Outlook database, Sudan recorded the highest government debt-to-GDP ratio amongst Arab countries in 2025. This ratio, used by the IMF to measure the public debt burden in relation to the size of the economy, is one of the most important internationally recognized indicators for assessing countries’ fiscal sustainability.<\/p>\n\n\n\n
Furthermore, the IMF indicated that such high ratio reflects the widening gap between the government obligations and the economic capacity to generate income. Which, in turn, exacerbates pressure on public finances, limits the government’s ability to finance basic services and investment, raises borrowing costs, and weakens the prospects for economic recovery.<\/p>\n\n\n\n
Sudan’s leading position in this indicator comes amidst an unprecedented economic crisis that has worsened -considerably- following the outbreak of the war in (April 2023). This crisis is characterized by a contraction in production, a decline in tax revenues, the disruption of key economic sectors, and continued pressure on public finances and rising financing needs.<\/p>\n\n\n\n
The latest IMF data shows that Sudan\u2019s government debt-to-GDP ratio remains extremely high, estimated at (169.1% in 2026), which, further reflects the state of continued fiscal pressures even after (2025).<\/p>\n\n\n\n
In contrast, the average government debt-to-GDP ratio in the Middle East is around (44.7%), highlighting the significant difference between Sudan and the regional average.<\/p>\n\n\n\n
Economic experts emphasize that the debt-to-GDP ratio does not measure the absolute value of debt, but rather the size of the debt relative to a country\u2019s economic capacity. Therefore, its considered the most widely utilized metric by international financial institutions for assessing public finances and fiscal sustainability risks.<\/p>\n\n\n\n
Moreover, the civilian-led transitional government under Abdalla Hamdok was close to achieving the largest debt relief package in Sudan\u2019s history, having made significant progress under the Heavily Indebted Poor Countries (HIPC) Initiative, which would have written off approximately (80%) of external debt, unfortunately however, the military coup in (October 2021) and the subsequent outbreak of war in (April 2023) thwarted the aforementioned progress.<\/p>\n\n\n\n
The ongoing war caused widespread destruction in terms of the economic infrastructure, halting production in key sectors, affecting trade and investment, and displacing millions of Sudanese to camps for internally displaced persons (IDPs) and refugees. Meanwhile, State resources were increasingly diverted to financing military operations at the expense of basic services and development. As a result, Sudan went from seeking debt relief to having the highest public debt burden amongst Arab countries in terms of its economy.<\/p>\n\n\n\n
Hence, economists argue that the war not only led to economic contraction, but also to the redirection of a significant portion of public resources toward military spending at the expense of basic services, investment, and development. Such measures took place at a time when tax revenues and returns from productive sectors declined, and the informal economy and corruption expanded, deepening the public debt crisis, weakening the State’s ability to meet its financial obligations, and undermining prospects for economic recovery and attracting investment.<\/p>\n\n\n\n
Following the outbreak of the ongoing war in (April 2023) between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF), the Sudanese economy has suffered a notable contraction. The conflict claimed the innocent lives of tens of thousands, whilst millions were displaced, fleeing for refuge, which, in turn, led to widespread collapse of State institutions and basic services, amidst a humanitarian crisis described by the United Nations as the worst in the world.<\/p>\n","protected":false},"excerpt":{"rendered":"
Data issued by the International Monetary Fund (IMF) showed that Sudan recorded the highest government debt-to-GDP (Gross Domestic Product) ratio amongst Arab countries in 2025. This indicator reflected the escalating financial pressures affecting the Sudanese economy as the war continues and economic activity as well as public revenues decline as well. According to the IMF’s …<\/p>\n","protected":false},"author":8,"featured_media":163174,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-163175","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\n