South Sudan's Economy in 2026: An Oil Rebound Against Soaring Prices
Higher oil output has met high inflation and unpaid salaries, leaving recovery fragile.
South Sudan's economy is showing two faces at once. According to the World Bank and the African Development Bank, oil production — the source of the large majority of government revenue — recovered to around 157,000 barrels per day in early FY26 after an agreement to keep the export route through Sudan open.
Yet the gains sit alongside severe strain. The World Bank reported that average inflation, proxied by food prices, reached roughly 234% in FY25, the fiscal deficit widened, and many civil servants went months without pay.
Why it matters
For ordinary South Sudanese, the headline oil figures matter less than prices at the market and whether salaries arrive. Economists cited by international institutions caution that without fiscal discipline and diversification beyond oil, recovery will remain vulnerable to the next shock.
What to watch
- Whether oil output holds and export routes stay open
- Inflation and the gap between official and parallel exchange rates
- Payment of civil-service salary arrears
- Progress on non-oil revenue
Maridian will track these indicators as official figures are updated.
Aluel Deng reports on business, trade and financial inclusion across South Sudan and East Africa.
More from Aluel Deng →