Sudan's economic challenges are “daunting” and emergency measures are needed to stabilize the economy, the International Monetary Fund said on Tuesday.

The IMF said initial findings from a recent mission to Sudan found the economic situation in 2012 had not improved from 2011, when growth slowed to 2.7 percent, year-end inflation reached 19 percent and the fiscal deficit was about 4 percent of gross domestic product.

“The mission recommends a two-pronged reform strategy: short-term emergency measures to regain control of, and stabilize, the economy, including fiscal consolidation, and in the medium term, a comprehensive structural reform program to recalibrate the economy in line with the country's economic and financial potential,” the IMF said in a statement. - Reuters