In-Depth Analysis
Democratic Republic of Congo
The DRC is still heavily dependent on mining for economic activity, but while the country has a vast unexploited reserve of natural resources, it has been held back by widespread conflict, rampant corruption, and a weak regulatory environment. The government has now started to make an effort to improve, leading to renewed interest from investors to tap into the untapped market.
The significant rise in key commodity prices, notably seen for copper, and a strong performance in the extractive sector should contribute to a robust expansion in real GDP. Given the increase in the price of copper as well as cobalt, we forecast that total export earnings will reach $25.8bn this year. Indeed, exports have been recorded at $21.6bn for the first eight months of this year. We forecast that the economy will expand by 6.4% in 2021. Other factors that should underpin the economic expansion include new reform programmes, a recovery in consumption and investment, and the development of Special Economic Zones. (Source: DRC Quarterly Update, published December 2021.)
Macroeconomic Data
(2020)
|
Fiscal Balance (as a % of GDP) |
-2.0 |
|
Consumer Price Index (% change y-o-y, avg) |
14.6 |
|
Current Account Balance (as a % of GDP) |
-2.2 |
|
Real GDP (annual % change) |
0.8 |
|
GDP per Capita, US$ |
557.2 |
|
Import Cover (months) |
0.6 |
|
Population, million |
89.6 |
| Total External Debt (as a % of GDP) |
12.3 |