Mother Earth Travel > Country Index > Central African Republic > Map Economy History |
| Economy - overview: Subsistence agriculture, together with
forestry, remains the backbone of the economy of the Central African
Republic (CAR), with more than 70% of the population living in outlying
areas. The agricultural sector generates half of GDP. Timber has accounted
for about 16% of export earnings and the diamond industry for nearly 54%.
Important constraints to economic development include the CAR's landlocked
position, a poor transportation system, a largely unskilled work force,
and a legacy of misdirected macroeconomic policies. The 50% devaluation of
the currencies of 14 Francophone African nations on 12 January 1994 had
mixed effects on the CAR's economy. Diamond, timber, coffee, and cotton
exports increased, leading an estimated rise of GDP of 7% in 1994 and
nearly 5% in 1995. Military rebellions and social unrest in 1996 were
accompanied by widespread destruction of property and a drop in GDP of 2%.
The IMF approved an Extended Structure Adjustment Facility in 1998 and the
World Bank extended further credits in 1999 and approved a $10 million
loan in early 2001. The government has set targets of 3.5% GDP growth in
2001 and 2002. As of January 2001, many civil servants were owed as much
as 30 months pay, leading them to go on strike and further damaging the
economy.
GDP:
purchasing power parity - $6.1 billion (2000 est.) SOURCE: The World Factbook |
Mother Earth Travel > Country Index > Central African Republic > Map Economy History