Economic growth is projected at 4.7% in 2024 and an average of 4.8% between 2024 and 2028, underpinned by the continued expansion of the main mines and a gradual acceleration of growth in the non-extracting sector, announces the International Monetary Fund in a press release published this Wednesday, July 3.
Inflation is expected to remain high, averaging 17.2% in 2024 and reaching 12% by the end of December 2024, before gradually returning to the Central Bank of Congo’s medium-term target of 7%.
Fiscal pressures are expected to persist, but strong revenue performance and efforts to contain non-priority spending will help reduce the domestic budget deficit to below 1% of GDP in 2024 and the medium term.
Still according to the text, the main risks to the outlook stem from worsening armed conflicts in the East, further inflationary pressures from volatile oil and food prices, with negative effects on real household disposable income, a sharp slowdown in growth in China, and an intensification of regional conflicts, including the war in Ukraine and the conflict in the Middle East, which could weigh on export earnings and foreign direct investment.
These data are released in the context of the Board of Directors’ conclusion on Wednesday of the Article IV consultation and the completion of the sixth and final review of the Extended Credit Facility (ECF) agreement for the DRC.
This latest review enabled an immediate disbursement of around $224.7 million to support balance of payments needs, bringing total disbursements to over $1,570 million.
“For the sixth and final review of the FEC agreement, all quantitative performance criteria were met, with the exception of the performance criterion on the domestic budget balance, which was not met due to higher-than-expected exceptional expenditures, mainly for security and the 2023 general elections,” acknowledges the Board, adding that “corrective measures are being implemented to address this missed performance criterion. The structural reform agenda is progressing, albeit at a slower pace than expected.” #OMA #OrganisationMarocAfrikaCulturesetDéveloppement #NajibKettani #Economy #DRC #Growth2024 #IMF
