The current conflict has had a significant financial impact on South Sudan with 2015/16 GDP contracting by 6.3%. With oil production disruptions and below-average agriculture production, the economy is expected to contract further in FY2016/02017, while fiscal and current account deficits will soar, spiraling domestic prices and the parallel market premium. Extreme poverty rate has increased to 65.9%. Avoiding protracted crisis requires recommitment to a political settlement and major fiscal adjustment.