The Impact of Macroeconomic Policies on Economic Growth in Sudan

Dr. Mohamed Abdalla Mohamed Ahmed

Volume 6, Issue 3

Abstract: The study aimed to identify the impact of macroeconomic policies on economic growth in Sudan during the period from 2000 to 2022. The paper hypothesized that macroeconomic policies (fiscal policy, monetary policy, and foreign trade policy) have a direct impact on economic growth rates, focusing on the most important macroeconomic indicators as independent variables, and gross domestic product (GDP) as an indicator of economic growth as the dependent variable. The paper adopted a descriptive-analytical approach and an econometric model, using secondary data from reports from the Central Bank of Sudan, the Ministry of Finance and Economic Planning, and the Central Bureau of Statistics .The most important findings of the paper were a positive relationship between money supply, government spending, public revenues, the exchange rate, and economic growth. The results showed that an increase in money supply leads to an increase in GDP through an increase in government spending, while an increase in government spending leads to an increase in GDP.  Public revenues also play a pivotal role in financing public spending, which enhances economic growth. Furthermore, the depreciation of the Sudanese pound’s exchange rate leads to an increase in the GDP growth rate by increasing the volume of exports, which contributes to reducing the trade deficit and improving the balance of payments. The paper’s most important recommendations include directing government spending toward priority sectors such as education, health, and infrastructure, while reducing reliance on current spending and increasing capital spending to support development projects that generate sustainable economic returns. It also aims to integrate fiscal, monetary, and foreign trade policies to ensure macroeconomic stability and enhance the effectiveness of macroeconomic policies in achieving economic growth and sustainable development.

 Keywords: Microeconomics Policies, Economic growth, Fiscal policy, Monetary policy, foreign trade Policy, Sudan.

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