Central African Republic Economy Profile 2001

Economy - overview

Subsistence agriculture, together with forestry, remains the backbone of the economy of the Central African Republic (CAR), with more than 70% of the population living in outlying areas. The agricultural sector generates half of GDP. Timber has accounted for about 16% of export earnings and the diamond industry for nearly 54%. Important constraints to economic development include the CAR's landlocked position, a poor transportation system, a largely unskilled work force, and a legacy of misdirected macroeconomic policies. The 50% devaluation of the currencies of 14 Francophone African nations on 12 January 1994 had mixed effects on the CAR's economy. Diamond, timber, coffee, and cotton exports increased, leading an estimated rise of GDP of 7% in 1994 and nearly 5% in 1995. Military rebellions and social unrest in 1996 were accompanied by widespread destruction of property and a drop in GDP of 2%. The IMF approved an Extended Structure Adjustment Facility in 1998 and the World Bank extended further credits in 1999 and approved a $10 million loan in early 2001. The government has set targets of 3.5% GDP growth in 2001 and 2002. As of January 2001, many civil servants were owed as much as 30 months pay, leading them to go on strike and further damaging the economy.

GDP (purchasing power parity)

purchasing power parity - $6.1 billion (2000 est.)

GDP - real growth rate

3.5% (2000 est.)

GDP - per capita (PPP)

purchasing power parity - $1,700 (2000 est.)

GDP - composition by sector

agriculture: 53%

industry: 20%

services: 27% (1999 est.)

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%: 0.7%

highest 10%: 47.7% (1993)

Inflation rate (consumer prices)

3% (2000 est.)

Labor force

NA

Unemployment rate

6% (1993)

Budget

revenues: $638 million

expenditures: $1.9 billion, including capital expenditures of $888 million (1994 est.)

Industries

diamond mining, sawmills, breweries, textiles, footwear, assembly of bicycles and motorcycles

Industrial production growth rate

NA%

Electricity - production

102 million kWh (1999)

Electricity - production by source

fossil fuel: 20.59%

hydro: 79.41%

nuclear: 0%

other: 0% (1999)

Electricity - consumption

94.9 million kWh (1999)

Electricity - exports

0 kWh (1999)

Electricity - imports

0 kWh (1999)

Agriculture - products

cotton, coffee, tobacco, manioc (tapioca), yams, millet, corn, bananas; timber

Exports

$166 million (f.o.b., 2000)

Exports - commodities

diamonds, timber, cotton, coffee, tobacco

Exports - partners

Benelux 64%, Cote d'Ivoire, Spain, China, Egypt, France (1999)

Imports

$154 million (f.o.b., 2000)

Imports - commodities

food, textiles, petroleum products, machinery, electrical equipment, motor vehicles, chemicals, pharmaceuticals, consumer goods, industrial products

Imports - partners

France 35%, Cameroon 13%, Benelux, Cote d'Ivoire, Germany, Japan (1999)

Debt - external

$790 million (1999 est.)

Economic aid - recipient

$172.2 million (1995); note - traditional budget subsidies from France

Currency

Communaute Financiere Africaine franc (XAF); note - responsible authority is the Bank of the Central African States

Currency (code)

XAF

Exchange rates

Communaute Financiere Africaine francs (XAF) per US dollar - 699.21 (January 2001), 711.98 (2000), 615.70 (1999), 589.95 (1998), 583.67 (1997), 511.55 (1996); note - from 1 January 1999, the XAF is pegged to the euro at a rate of 655.957 XAF per euro

Fiscal year

calendar year