Congo Republic of the Economy - 2021

Economic 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.

Real GDP growth rate

-3.1% (2017 est.)

-2.8% (2016 est.)

2.6% (2015 est.)

Inflation rate (consumer prices)

2.2% (2019 est.)

1.1% (2018 est.)

0.4% (2017 est.)

Credit ratings

Fitch rating: CCC (2019)

Moody's rating: Caa2 (2018)

Standard & Poors rating: CCC+ (2020)

Real 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

GDP (official exchange rate)

$8.718 billion (2017 est.)

Real GDP per capita

$3,673 (2019 est.)

$3,907 (2018 est.)

$4,274 (2017 est.)

note: data are in 2017 dollars

Gross national saving

19.5% of GDP (2017 est.)

-12.8% of GDP (2016 est.)

6.6% of GDP (2015 est.)

GDP - composition, by sector of origin

agriculture: 9.3% (2017 est.)

industry: 51% (2017 est.)

services: 39.7% (2017 est.)

GDP - composition, by end use

household 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.)

Ease of Doing Business Index scores

Overall score: 39.5 (2020)

Starting a Business score: 65.8 (2020)

Trading score: 19.7 (2020)

Enforcement score: 44 (2020)

Agricultural products

cassava, sugar cane, oil palm fruit, cassava leaves, bananas, plantains, roots/tubers, game meat, vegetables, mangoes/guavas

Industries

petroleum extraction, cement, lumber, brewing, sugar, palm oil, soap, flour, cigarettes

Industrial production growth rate

-3% (2017 est.)

Labor force

2.055 million (2016 est.)

Labor force - by occupation

agriculture: 35.4%

industry: 20.6%

services: 44% (2005 est.)

Unemployment rate

36% (2014 est.)

Population below poverty line

40.9% (2011 est.)

Gini Index coefficient - distribution of family income

48.9 (2011 est.)

Household income or consumption by percentage share

lowest 10%: 2.1%

highest 10%: 37.1% (2005)

Budget

revenues: 1.965 billion (2017 est.)

expenditures: 2.578 billion (2017 est.)

Taxes and other revenues

22.5% (of GDP) (2017 est.)

Budget surplus (+) or deficit (-)

-7% (of GDP) (2017 est.)

Public debt

130.8% of GDP (2017 est.)

128.7% of GDP (2016 est.)

Fiscal year

calendar year

Current account balance

-$1.128 billion (2017 est.)

-$5.735 billion (2016 est.)

Exports

$4.193 billion (2017 est.)

$4.116 billion (2016 est.)

Exports - partners

China 49%, United Arab Emirates 15%, India 6%, Italy 5% (2019)

Exports - commodities

crude petroleum, copper, lumber, ships, refined petroleum (2019)

Imports

$2.501 billion (2017 est.)

$5.639 billion (2016 est.)

Imports - partners

China 15%, France 12%, Belgium 6%, Angola 5% (2019)

Imports - commodities

ships, chicken products, refined petroleum, processed fish, packaged medicines (2019)

Reserves of foreign exchange and gold

$505.7 million (31 December 2017 est.)

$727.1 million (31 December 2016 est.)

Debt - external

$4.605 billion (31 December 2017 est.)

$4.721 billion (31 December 2016 est.)

Exchange rates

Cooperation 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.)