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.
Strong mining sector activity and favourable demand conditions for key export commodities have seen economic conditions improve this year. 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 potential political unrest also pose downside risks to the growth outlook. On the political front, long overdue elections are to be held on December 23. While there are some positives for overall risk, most notably the fact that President Joseph Kabila will not, after all, run for re-election, we still see the overall trend on risk as negative, and do not expect that we will lower our risk rating from its current level of high until the elections are past and there has been an opportunity to evaluate what the DRC looks like under new management. (Source: DRC Quarterly Update, published November 2018.)
Macroeconomic Data
(2018)
|
Fiscal Balance (as a % of GDP) |
-0.8 |
|
Consumer Price Index (% change y-o-y, avg) |
24.2 |
|
Current Account Balance (as a % of GDP) |
-2.3 |
|
Real GDP (annual % change) |
4.1 |
|
GDP per Capita, US$ |
559 |
|
Import Cover (months) |
0.9 |
|
Population, million |
84.2 |
| Total External Debt (as a % of GDP) |
12.7 |