South Sudan, the world’s youngest nation and one of its most fragile, has emerged as the world’s fastest-growing economy in 2025, according to the International Monetary Fund.
The oil-dependent nation led by President Salva Kiir sits atop the IMF’s 2025 growth table with a GDP expansion of 27.2 percent. The surge places the country ahead of Libya, Senegal, Sudan and Uganda — part of a broader African showing in the global top ten.
The sharp rise, however, reflects a rebound from deep contraction and is powered almost entirely by the resumption of oil exports. For a country scarred by conflict, corruption, and chronic food insecurity, the headline masks a more complicated reality.
Oil rebound fuels growth
South Sudan’s economy shrank sharply in 2024 after conflict in Sudan disrupted its export pipeline to Port Sudan. The restart of flows earlier this year produced a statistical snapback that dominates 2025 figures.
With crude accounting for nearly all exports and state revenue, the resumption explains the double-digit growth projection almost single-handedly.
Fragile foundations
Beneath the headline numbers, structural weaknesses persist, including pipeline risk, as renewed fighting in Sudan could halt exports again; economic strain, with inflation remaining elevated and the government facing limited fiscal buffers; and governance gaps, after a recent U.N. report accused officials of looting public funds, undercutting hopes that oil income will benefit ordinary citizens.
South Sudan’s rise underscores Africa’s weight in global growth tables. The IMF sees Libya expanding by 13.7 percent, Senegal by 9.3 percent, Sudan by 8.3 percent, and Uganda by 7.5% in 2025. Much of this growth is tied to commodities or new energy projects rather than diversified expansion.
The test ahead
For investors and policymakers, South Sudan’s numbers are both eye-catching and deceptive. On paper, the country leads the world. In practice, its recovery hinges on keeping oil flowing through unstable terrain and channeling revenues into services rather than patronage.
The IMF has stressed that without reforms to curb inflation, strengthen governance, and support social spending, South Sudan’s growth will remain statistical — not transformational.
