South Sudan: South Sudan Economy on Edge Amid War, Low Oil Production

Mar 22, 2015 | Jason Patinkin, The Associated Press
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Hit by falling oil revenues, South Sudan’s economy is also troubled by a violent conflict that looks set to continue. It could get worse in this young country, with the U.N. warning that South Sudan’s economy is now threatened by rampant inflation as the central bank is allegedly printing money to meet a budget shortfall. Since December South Sudan’s government has resorted to the “old trick” of printing money, said Toby Lanzer, the U.N.’s top humanitarian official in South Sudan, at a news conference on Tuesday. South Sudan’s economy has suffered since the outbreak in December 2013 of fighting between supporters of President Salva Kiir and renegade troops loyal to his former deputy. Several peace agreements have collapsed. Oil production facilities have been damaged in the fighting and some have fallen under rebel control. Oil production has been cut by 60 percent, Finance Ministry Director General Philip Ajack Boldit told The Associated Press.