Violence again escalated in Mali after government soldiers and separatist rebels exchanged heavy gunfire. The exchange happened in the northern town of Kidal on Sunday, with both sides claiming the other initiated the fight. Just days before, the rebels said they were not anymore participating in the peace agreement they signed with the government.

In June, both sides had signed the peace accord. According to an Associated Press report, the accord also allowed the return of Malian soldiers in Kidal which still remained under the control of the separatists. It also allowed the presidential election to proceed in July, the first election held after a coup in March 2012.

As a result of the coup, the Malian economy stood at a standstill last year, with real gross domestic product (GDP) growth pegged at -1.5%, according to a report in the African Economic Outlook. The government was still able to pursue a policy of fiscal discipline in 2012 in spite of the recession. The International Monetary Fund (IMF) granted a loan facility worth USD 18 million to Mali early this year. Its economic growth forecast is pegged at 5.4% this year and 5.1% next year.