Congo, Republic of the Economy Profile 2009

Economy - overview

The economy is a mixture of subsistence agriculture, an industrial sector based largely on oil, and support services, and a government characterized by budget problems and overstaffing. Oil has supplanted forestry as the mainstay of the economy, providing a major share of government revenues and exports. In the early 1980s, rapidly rising oil revenues enabled the government to finance large-scale development projects with GDP growth averaging 5% annually, one of the highest rates in Africa. The government has mortgaged a substantial portion of its oil earnings through oil-backed loans that have contributed to a growing debt burden and chronic revenue shortfalls. Economic reform efforts have been undertaken with the support of international organizations, notably the World Bank and the IMF. However, the reform program came to a halt in June 1997 when civil war erupted. Denis SASSOU-NGUESSO, who returned to power when the war ended in October 1997, publicly expressed interest in moving forward on economic reforms and privatization and in renewing cooperation with international financial institutions. Economic progress was badly hurt by slumping oil prices and the resumption of armed conflict in December 1998, which worsened the republic's budget deficit. The current administration presides over an uneasy internal peace and faces difficult economic challenges of stimulating recovery and reducing poverty. Recovery of oil prices has boosted the economy's GDP and near-term prospects. In March 2006, the World Bank and the International Monetary Fund (IMF) approved Heavily Indebted Poor Countries (HIPC) treatment for Congo.

GDP (purchasing power parity)

$15.35 billion (2008 est.)
$14.43 billion (2007 est.)
$14.66 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$10.77 billion (2008 est.)

GDP - real growth rate

6.4% (2008 est.)
-1.6% (2007 est.)
6.2% (2006 est.)

GDP - per capita (PPP)

$3,900 (2008 est.)
$3,800 (2007 est.)
$4,000 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 5.6%
industry: 57.1%
services: 37.3% (2006 est.)

Population below poverty line

NA%

Labor force

NA

Unemployment rate

NA%

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Investment (gross fixed)

34.5% of GDP (2008 est.)

Budget

revenues: $4.515 billion
expenditures: $2.721 billion (2008 est.)

Inflation rate (consumer prices)

6.6% (2008 est.)
2.7% (2007 est.)

Central bank discount rate

NA% (31 December 2008)
5.25% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
15% (31 December 2007)

Stock of money

$NA (31 December 2008)
$1.4 billion (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$204.3 million (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$NA (31 December 2007)

Industries

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

Industrial production growth rate

7% (2008 est.)

Electricity - production

444 million kWh (2006 est.)

Electricity - production by source

fossil fuel: 0.3%
hydro: 99.7%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

564 million kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

411 million kWh (2006 est.)

Oil - production

261,000 bbl/day (2008 est.)

Oil - consumption

7,677 bbl/day (2006 est.)

Oil - imports

1,702 bbl/day (2005)

Oil - exports

230,200 bbl/day (2005 est.)

Oil - proved reserves

1.6 billion bbl (1 January 2008 est.)

Natural gas - production

180 million cu m (2006 est.)

Natural gas - consumption

180 million cu m (2006 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

90.61 billion cu m (1 January 2008 est.)

Current Account Balance

$1.085 billion (2008 est.)
$-2.181 billion (2007 est.)

Agriculture - products

cassava (tapioca), sugar, rice, corn, peanuts, vegetables, coffee, cocoa; forest products

Exports

$10.85 billion (2008 est.)
$5.808 billion (2007 est.)

Exports - commodities

petroleum, lumber, plywood, sugar, cocoa, coffee, diamonds

Exports - partners

US 44.5%, China 32.8%, France 6% (2008)

Imports

$2.988 billion (2008 est.)
$2.858 billion (2007 est.)

Imports - commodities

capital equipment, construction materials, foodstuffs

Imports - partners

France 19.1%, China 15.6%, South Korea 15.2%, US 4.8%, India 4.7%, Italy 4.5% (2008)

Reserves of foreign exchange and gold

$3.873 billion (31 December 2008 est.)
$2.184 billion (31 December 2007 est.)

Debt - external

$5 billion (2000 est.)

Market value of publicly traded shares

$NA

Economic aid - recipient

$1.449 billion (2005)

Currency (code)

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

Currency (code)

XAF

Exchange rates

Cooperation Financiere en Afrique Centrale francs (XAF) per US dollar - 447.81 (2008 est.), 483.6 (2007), 522.59 (2006), 527.47 (2005), 528.29 (2004)
note: since 1 January 1999, the Central African CFA franc (XAF) has been pegged to the euro at a rate of 655.957 CFA francs per euro; Central African CFA franc (XAF) coins and banknotes are not accepted in countries using West African CFA francs (XOF), and vice versa, even though the two currencies trade at par

Fiscal year

calendar year