Page 543 - 2016 - Vol. 40

the inflow of oil transit fees, helped reduce the deficit in
2013 by an estimated 1.8 percentage points to 1.7%
compared with 3.5% in2012.ln 2013 real gross domestic
product (GOP) grew by 3.6%, up from 1.4% in 2012,
driven by agriculture, oil, gold and transit fees. It is
predicted to recede slightly in 2014 to 2.7%, because of
Fiscal consolidation, and is projected to reach 3.8% in 2015
. Inflation remained high at 36.2% and is forecasted to
drop to 26.8% in 2014 and projected at 23.2% for 2015
(Economic Commission for Africa, 2012).

Domestic demand, including both public and private
consumption and investment, contracted in 2011 following
the secession of South Sudan with the subsequent loss of
75% of oil income and 20% of population. The decline in
private consumption and investment is expected to continue
in 2012-13 due to the negative impact of the post-
separation adjustment and continued political risks arising
from ongoing-armed conflicts. The current account deficit
was 7.5% of GDP in 2011. The government introduced a
series of measures to contain import growth including
banning luxury imports and the imposition of an import tax
ranging from 50%-100% on 18 consumer commodities.
There is growing concern that the fiscal adjustment, which

- 55 -