A staff team from the International Monetary Fund (IMF), which conducted the 2022 Article IV consultation with the Central African Republic (CAR), from 05 to 20 December, commented on the growth economy of this country in 2023, which will depend, according to it, on the conditions of financing and the continuation of the reforms, according to a press release from the institution published Thursday.
In this context, the IMF Mission, led by Albert Touna Mama, encourages the government “to deepen the dialogue with the international community on concessional financing in 2023 and beyond, in order to meet external financing needs and ensure the sustainability of the public debt”.
The Fund’s experts believe that “advances in this dialogue as well as the continuation of reforms, including reforms aimed at strengthening the management and transparency of public finances and improving governance as well as reforms of the hydrocarbons market, can lead to an economic recovery in 2023”.
Risks to the economic outlook nevertheless remain high, including a possible deterioration in the terms of trade and a worsening of the security situation.
Also speaking on the 2023 finance law, the IMF team considers that this law “anticipates a stabilization of the budgetary situation and continues efforts to mobilize domestic revenue through new measures”.
The rise in fuel prices at the pump should both enable the State to regain tax revenue in order to ensure priority public spending, but also to restore a regular and high-quality fuel supply throughout the territory, believes the mission, which promises to put its technical expertise at the disposal of the Central African authorities to reform the price structure so that it is more flexible and better protects the most vulnerable populations affected by soaring hydrocarbon prices.
In 2022, economic activity in the CAR experienced lackluster performance. The economic recovery that had begun at the end of the Covid-19 crisis was seriously disrupted by the shortage of fuels and the soaring prices of foodstuffs, following the war in Ukraine, also informs the experts. of the IMF.
By OMA Newsletter N° 1025 of 01/27/2023
Article published under the direction of Dr. Najib Kettani
The OMA, NGO with an Intercontinental vocation
For the development of cultural exchanges
Valuing human potential
The promotion and consolidation of Africa’s development, and
Inter-African integration
