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Republic of the Congo vs. Central African Republic

Economy

Republic of the CongoCentral African Republic
Economy - overview

The Republic of the Congo's economy is a mixture of subsistence farming, an industrial sector based largely on oil and support services, and government spending. Oil has supplanted forestry as the mainstay of the economy, providing a major share of government revenues and exports. Natural gas is increasingly being converted to electricity rather than being flared, greatly improving energy prospects. New mining projects, particularly iron ore, which entered production in late 2013, may add as much as $1 billion to annual government revenue. The Republic of the Congo is a member of the Central African Economic and Monetary Community (CEMAC) and shares a common currency - the Central African Franc - with five other member states in the region.

The current administration faces difficult economic challenges of stimulating recovery and reducing poverty. The drop in oil prices that began in 2014 has constrained government spending; lower oil prices forced the government to cut more than $1 billion in planned spending. The fiscal deficit amounted to 11% of GDP in 2017. The government's inability to pay civil servant salaries has resulted in multiple rounds of strikes by many groups, including doctors, nurses, and teachers. In the wake of a multi-year recession, the country reached out to the IMF in 2017 for a new program; the IMF noted that the country's continued dependence on oil, unsustainable debt, and significant governance weakness are key impediments to the country's economy. In 2018, the country's external debt level will approach 120% of GDP. The IMF urged the government to renegotiate debts levels to sustainable levels before it agreed to a new macroeconomic adjustment package.

Subsistence agriculture, together with forestry and mining, remains the backbone of the economy of the Central African Republic (CAR), with about 60% of the population living in outlying areas. The agricultural sector generates more than half of estimated GDP, although statistics are unreliable in the conflict-prone country. Timber and diamonds account for most export earnings, followed by cotton. Important constraints to economic development include the CAR's landlocked geography, poor transportation system, largely unskilled work force, and legacy of misdirected macroeconomic policies. Factional fighting between the government and its opponents remains a drag on economic revitalization. Distribution of income is highly unequal and grants from the international community can only partially meet humanitarian needs. CAR shares a common currency with the Central African Monetary Union. The currency is pegged to the Euro.

Since 2009, the IMF has worked closely with the government to institute reforms that have resulted in some improvement in budget transparency, but other problems remain. The government's additional spending in the run-up to the 2011 election worsened CAR's fiscal situation. In 2012, the World Bank approved $125 million in funding for transport infrastructure and regional trade, focused on the route between CAR's capital and the port of Douala in Cameroon. In July 2016, the IMF approved a three-year extended credit facility valued at $116 million; in mid-2017, the IMF completed a review of CAR's fiscal performance and broadly approved of the government's management, although issues with revenue collection, weak government capacity, and transparency remain. The World Bank in late 2016 approved a $20 million grant to restore basic fiscal management, improve transparency, and assist with economic recovery.

Participation in the Kimberley Process, a commitment to remove conflict diamonds from the global supply chain, led to a partially lifted the ban on diamond exports from CAR in 2015, but persistent insecurity is likely to constrain real GDP growth.

GDP (purchasing power parity)$19.763 billion (2019 est.)

$20.489 billion (2018 est.)

$21.844 billion (2017 est.)

note: data are in 2017 dollars
$4.483 billion (2019 est.)

$4.354 billion (2018 est.)

$4.195 billion (2017 est.)

note: data are in 2017 dollars
GDP - real growth rate-3.1% (2017 est.)

-2.8% (2016 est.)

2.6% (2015 est.)
4.3% (2017 est.)

4.5% (2016 est.)

4.8% (2015 est.)
GDP - per capita (PPP)$3,673 (2019 est.)

$3,907 (2018 est.)

$4,274 (2017 est.)

note: data are in 2017 dollars
$945 (2019 est.)

$933 (2018 est.)

$913 (2017 est.)

note: data are in 2017 dollars
GDP - composition by sectoragriculture: 9.3% (2017 est.)

industry: 51% (2017 est.)

services: 39.7% (2017 est.)
agriculture: 43.2% (2017 est.)

industry: 16% (2017 est.)

services: 40.8% (2017 est.)
Population below poverty line40.9% (2011 est.)62% NA (2008 est.)
Household income or consumption by percentage sharelowest 10%: 2.1%

highest 10%: 37.1% (2005)
lowest 10%: 2.1%

highest 10%: 33% (2003)
Inflation rate (consumer prices)2.2% (2019 est.)

1.1% (2018 est.)

0.4% (2017 est.)
2.7% (2019 est.)

1.6% (2018 est.)

4.2% (2017 est.)
Labor force2.055 million (2016 est.)2.242 million (2017 est.)
Unemployment rate36% (2014 est.)6.9% (2017 est.)
Distribution of family income - Gini index48.9 (2011 est.)43.6 (2003 est.)

61.3 (1993)
Budgetrevenues: 1.965 billion (2017 est.)

expenditures: 2.578 billion (2017 est.)
revenues: 282.9 million (2017 est.)

expenditures: 300.1 million (2017 est.)
Industriespetroleum extraction, cement, lumber, brewing, sugar, palm oil, soap, flour, cigarettesgold and diamond mining, logging, brewing, sugar refining
Industrial production growth rate-3% (2017 est.)3.9% (2017 est.)
Agriculture - productscassava, sugar cane, oil palm fruit, cassava leaves, bananas, plantains, roots/tubers, game meat, vegetables, mangoes/guavascassava, yams, groundnuts, taro, bananas, sugar cane, beef, maize, plantains, milk
Exports$4.193 billion (2017 est.)

$4.116 billion (2016 est.)
$113.7 million (2017 est.)

$101.5 million (2016 est.)
Exports - commoditiescrude petroleum, copper, lumber, ships, refined petroleum (2019)lumber, gold, diamonds, sea vessels, cocoa paste (2019)
Exports - partnersChina 49%, United Arab Emirates 15%, India 6%, Italy 5% (2019)China 41%, United Arab Emirates 19%, France 7% (2019)
Imports$2.501 billion (2017 est.)

$5.639 billion (2016 est.)
$393.1 million (2017 est.)

$342.2 million (2016 est.)
Imports - commoditiesships, chicken products, refined petroleum, processed fish, packaged medicines (2019)refined petroleum, packaged medicines, natural gas, broadcasting equipment, second-hand clothing (2019)
Imports - partnersChina 15%, France 12%, Belgium 6%, Angola 5% (2019)India 18%, France 12%, United States 11%, China 9%, Netherlands 7%, Belgium 7%, Malta 6% (2019)
Debt - external$4.605 billion (31 December 2017 est.)

$4.721 billion (31 December 2016 est.)
$779.9 million (31 December 2017 est.)

$691.5 million (31 December 2016 est.)
Exchange ratesCooperation Financiere en Afrique Centrale francs (XAF) per US dollar -

579.8 (2017 est.)

593.01 (2016 est.)

593.01 (2015 est.)

591.45 (2014 est.)

494.42 (2013 est.)
Cooperation Financiere en Afrique Centrale francs (XAF) per US dollar -

605.3 (2017 est.)

593.01 (2016 est.)

593.01 (2015 est.)

591.45 (2014 est.)

494.42 (2013 est.)
Fiscal yearcalendar yearcalendar year
Public debt130.8% of GDP (2017 est.)

128.7% of GDP (2016 est.)
52.9% of GDP (2017 est.)

56% of GDP (2016 est.)
Reserves of foreign exchange and gold$505.7 million (31 December 2017 est.)

$727.1 million (31 December 2016 est.)
$304.3 million (31 December 2017 est.)

$252.5 million (31 December 2016 est.)
Current Account Balance-$1.128 billion (2017 est.)

-$5.735 billion (2016 est.)
-$163 million (2017 est.)

-$97 million (2016 est.)
GDP (official exchange rate)$8.718 billion (2017 est.)$1.937 billion (2017 est.)
Ease of Doing Business Index scoresOverall score: 39.5 (2020)

Starting a Business score: 65.8 (2020)

Trading score: 19.7 (2020)

Enforcement score: 44 (2020)
Overall score: 35.6 (2020)

Starting a Business score: 63.2 (2020)

Trading score: 52.4 (2020)

Enforcement score: 31.4 (2020)
Taxes and other revenues22.5% (of GDP) (2017 est.)14.6% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-7% (of GDP) (2017 est.)-0.9% (of GDP) (2017 est.)
GDP - composition, by end usehousehold consumption: 47.6% (2017 est.)

government consumption: 9.6% (2017 est.)

investment in fixed capital: 42.5% (2017 est.)

investment in inventories: 0.1% (2017 est.)

exports of goods and services: 62.9% (2017 est.)

imports of goods and services: -62.7% (2017 est.)
household consumption: 95.3% (2017 est.)

government consumption: 8.5% (2017 est.)

investment in fixed capital: 13.7% (2017 est.)

investment in inventories: 0% (2017 est.)

exports of goods and services: 12% (2017 est.)

imports of goods and services: -29.5% (2017 est.)
Gross national saving19.5% of GDP (2017 est.)

-12.8% of GDP (2016 est.)

6.6% of GDP (2015 est.)
5.4% of GDP (2017 est.)

8.2% of GDP (2016 est.)

4.2% of GDP (2015 est.)

Source: CIA Factbook