Public Management

Central African Republic: IMF signals deteriorated economic outlook despite authorities' efforts

Central African Republic: IMF signals deteriorated economic outlook despite authorities' efforts
Thursday, 02 February 2023 16:07

The country, which was already affected by the coronavirus pandemic, had to cope without aid from some donors. According to the IMF, with international prices still on the rise, its economic outlook is deteriorating.  

In the Central African Republic, the 2023 economic outlook has worsened due to the Covid-19 crisis and soaring international prices, which led to accelerating inflation, the IMF indicates in a press release dated January 26, 2023.

According to the institution, 2022, which was supposed to mark CAR's post-Covid economic recovery, was shaken by fuel shortages and soaring food prices, following the war in Ukraine, leading to a "record double-digit inflation - the highest in the Central African Economic and Monetary Community (CEMAC)." "As a result, forecasts for growth prospects have been revised downward and near-stagnation is now expected in 2022, given the generalized increase in production and import costs due to the country’s landlocked situation and the decline in domestic demand caused by the slowdown in public spending," the IMF wrote.

The forecast comes at a time when the country has very "little room to maneuver" with some partners suspending budget assistance amid acute food insecurity, which will rise to 49% this year up from 44% in 2022 (according to the World Food Program).

Last May, Central African authorities announced budget cuts to alleviate the cash flow situation, which was deemed "very worrisome" following the non-disbursement of some external budgetary support after the World Bank, the IMF, and several other foreign partners conditioned their aid to greater transparency, particularly in the country's security spendings.

Despite these challenging economic conditions, the efforts made by the government have had a positive impact, according to the IMF.  "The authorities’ prudent implementation of current expenditures and the under-execution of the investment budget helped partially offset the underperformance of public revenues and contain the increase in the public deficit," it indicates.

For 2023, the Fund calls on the authorities to "intensify the dialogue with the international community to secure concessional financing in 2023 and beyond, meet external financing needs and ensure public debt sustainability." The intensified dialogue, coupled with "efforts to strengthen the management and transparency of public finance and improve governance, as well as fuel market reforms, could support a recovery in 2023," it adds.

Moutiou Adjibi Nourou   

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
Côte d’Ivoire will receive $234 million for a sustainable urban mobility project in Abidjan. Gambia will receive $32.2 million to build...
Stanbic IBTC and Zenith Bank cut monthly card spending abroad to $500 and $200 Foreign reserves fall by $3.5 billion in six...
Cauri Money launches Gajo Money, an e-wallet for the Cameroonian diaspora, targeting €120 million in transactions by end-2025. The fintech...
• Kenya and ASR sign deal to reduce risk on projects worth up to $2 billion.• Risk cover will target infrastructure, energy, logistics, and trade...
Most Read
01

• Investors seem to keep focusing on yields, which are high for the moment• New Leadership might see...

Afreximbank Bonds Retain Market Confidence Despite Moody’s Downgrade
02

• ECOWAS Bank funds 47.7-km stretch of strategic 700-km road project• Lagos-Calabar highway seen boo...

Nigeria Secures $100 mln ECOWAS Bank Loan for Lagos-Calabar Coastal Highway
03

• Algeria grants commercial 5G licenses to top three telecom operators: Mobilis, Djezzy, and Ooredoo...

Algeria Awards Commercial 5G Licenses
04

• IFC teams up with AfDB and Nigeria’s EbonyLife to assess a new fund for African cinema• Sector cou...

IFC Plans Investment Fund to Help Grow African Film Industry
05

• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...

Coffee: Global Consumption Expected to Reach Record Level in 2025/2026
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.