The Congo has been implementing an IMF-supervised economic program since early 2022. According to the international institution, the country made noticeable progress but the recovery could be slowed by some challenges.

Congo's economic recovery will strengthen this year despite persisting risks, the IMF indicated in a release dated February 6, 2023.

According to the Fund, this improved recovery will be driven by stronger oil production and government development spending. The country is also expected to experience a deceleration in food inflation, which is expected to move closer to CEMAC inflation targets as international food prices decline. The non-oil private sector, employment, and income levels are also expected to grow, positively impacting the recovery.

However, the projected economic recovery is threatened by some challenges. The IMF believes that an intensification of the consequences of the war in Ukraine, climate shocks, lower oil prices and production, and weak implementation of reforms could dampen growth.

Since January 21, 2022, The Republic of Congo is implementing an IMF program for inclusive and resilient economic growth. The program is being implemented under a 36-month extended credit facility that entitles Congo to close to US$455 million in support.

Under the program, the IMF just approved the disbursement of a tranche of US$87 million to enable the government to effectively implement reforms in the areas of public finance and debt management, governance, and transparency, ensure economic resilience and support socio-economic development.

"Key measures include broadening the tax base, collecting tax arrears, and reducing fuel subsidies consistent with gradual fuel price deregulation, coupled with increased social assistance for the vulnerable. Strengthened management of public finances and debt will be critical to ensure more effective public spending, including to address the substantial infrastructure gaps, and debt sustainability," indicated IMF Deputy Managing Director, Mr. Bo Li.

Jean-Marc Gogbeu