In-Depth Analysis
Democratic Republic of Congo
The DRC’s political environment presents elevated risk, and power struggles (which overlap with existing armed insurgencies) have a negative impact on the business and investment environment. Most of the economy remains based in the extractive sector and corruption and infrastructure gaps make business in all other sectors difficult.
The mining sector maintained its upward momentum throughout the first half of the year, building on a gradual recovery in 2017. Although an improved outlook for the mining sector is expected to support a modest growth recovery, non-mining activity will remain constrained by a weak currency and high inflation. Uncertainty about a new mining code and simmering political unrest also pose downside risks to the growth outlook. On the political front, after a long period of speculation that President Joseph Kabila would continue to cling to power, he has picked a successor to stand in the presidential elections to be held in December this year. Although this development has reduced conflict risk in the run-up to the elections, overall political risk remains high. (Source: DRC Quarterly Update, published October 2018.)
Macroeconomic Data
(2017)
|
Fiscal Balance (as a % of GDP) |
-2.7 |
|
Consumer Price Index (% change y-o-y, avg) |
53.2 |
|
Current Account Balance (as a % of GDP) |
-3.2 |
|
Real GDP (annual % change) |
3.7 |
|
GDP per Capita, US$ |
461.8 |
|
Import Cover (months) |
0.7 |
|
Population, million |
81.5 |
| Total External Debt (as a % of GDP) |
14.9 |