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.
Real GDP growth is estimated to have reached 5.8% in 2018, given robust activity in the mining sector, followed by favourable demand conditions and a stronger price environment for both copper and cobalt. The current global economic slowdown and commodity price slump are set to weigh on the DRC’s undiversified economy in 2019. Over the medium term, GDP growth should be supported by a gradual uptick in commodity prices, an increase in mining activity, and a steady recovery in public investment. Presenting a very positive development, International Monetary Fund (IMF) representatives and Congolese authorities reached an agreement ad-referendum on a reform programme entailing a Rapid Credit Facility and a Staff-Monitored Programme through end-May 2020. This will be the first time in seven years that the IMF resumes lending to the DRC. (Source: DRC Quarterly Update, published November 2019.)
Macroeconomic Data
(2018)
|
Fiscal Balance (as a % of GDP) |
0.4 |
|
Consumer Price Index (% change y-o-y, avg) |
21.7 |
|
Current Account Balance (as a % of GDP) |
-4.6 |
|
Real GDP (annual % change) |
5.8 |
|
GDP per Capita, US$ |
561.4 |
|
Import Cover (months) |
0.4 |
|
Population, million |
84.1 |
| Total External Debt (as a % of GDP) |
10.5 |