The current recession is mainly due, according to experts, to the scarcity of cash liquidity among citizens after the cessation of their sources of income from self-employment and salaries that could not be disbursed to public service employees and pensioners over the past 5 months, which prompted residents to refrain from buying many goods..
Ahmed Al-Hadi, a merchant in the central market in Wad Madani, told Sky News Arabia, “Sales have declined significantly over the past two months, and we have been sitting in front of our stores from morning to evening waiting for customers, but they do not come.”“.
He added, “The market is crowded with people, but most of them just ask us about the prices of the products and then leave without buying anything. It is clear that they do not have the money due to the suspension of salaries, noting that the employee segment was the most consuming among our customers.”“.
Significant decrease
The prices of 4 basic commodities fell by 100 percent in both the capital, Khartoum, and the states of Gezira and Sennar in central Sudan: wheat flour, laundry soap, vermicelli, vegetables and fruits..
The prices of lentils and rice also fell by an average of 25 percent, while the prices of sugar and edible oils decreased slightly these days, according to what shop owners in those areas reported to Sky News Arabia.“.
Hussein Saleh, a trader in the city of Sennar, points out that the decline in some consumer goods, such as wheat flour and soap, comes as a result of the arrival of large quantities of them imported from neighboring countries, which completely flooded the markets in light of a significant decrease in purchases..
Speaking to Sky News Arabia, Saleh said, “We are exposed to significant losses as we have expenses on renting shops, in addition to fees and levies imposed by government authorities, and on the other hand, there is a severe weakness in purchasing activity.”“.
He notes that the beginning of each month witnessed a significant increase in sales activity, and all shop owners, whether food or clothing, relied on it to achieve wide profits, but this has stopped since the outbreak of war last April..
About 4 million Sudanese working in the public service sector have not received their salaries over the past 5 months, as one of the worst repercussions of the brutal war that devoured the center of the Sudanese economy and disrupted production, taxes and customs, which the state depends on to cover public expenses..
Forced austerity
With the cessation of work and salaries, the Sudanese were forced to enter into forced austerity, relying on a limited food basket and reducing the number of meals to less than two a day for some families..
Siddiq Al-Tayeb, a government employee who was displaced from Khartoum to the city of Wad Madani in Gezira State, said: “Economic conditions forced us to change our dietary pattern, so we began to depend on local foods made from local corn because their prices are lower than wheat flour bread, which we cannot buy every day.”“.
Speaking to Sky News Arabia, Al-Tayeb adds, “My salary and additional work have stopped, while I bear high costs for renting the house we live in in Wad Madani. We had to give up many goods, especially fruits and meat, which have become luxury goods for us. Any option other than rationalizing family spending“.
Humanitarian aid shipments arrived from abroad, but could not reach those affected by the war as a result of the lack of safe corridors in light of the continuing military clashes between the army and the Rapid Support Forces..
Economist Ibrahim Onur told Sky News Arabia that “the recession and decline in production comes as a natural result of the lack of purchasing power as a result of the cessation of salaries and side income activities for citizens.”“.
He points out that the population is currently living on the minimum level of consumption, which has led to the recession that we are witnessing at the present time. These are interconnected matters that are considered one of the repercussions of the war..
He explains that the decline in the prices of some commodities is also a natural result of the expansion of commodity supply, while on the other hand, there is a decrease in demand and purchases.
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