Mother Earth Travel > Country Index > Republic of the Congo > Map Economy |
| Economy - overview: The economy is a mixture of village
agriculture and handicrafts, an industrial sector based largely on oil,
support services, and a government characterized by budget problems and
overstaffing. Oil has supplanted forestry as the mainstay of the economy,
providing a major share of government revenues and exports. In the early
1980s, rapidly rising oil revenues enabled the government to finance
large-scale development projects with GDP growth averaging 5% annually,
one of the highest rates in Africa. Moreover, the government has mortgaged
a substantial portion of its oil earnings, contributing to the
government's shortage of revenues. The 12 January 1994 devaluation of
Franc Zone currencies by 50% resulted in inflation of 61% in 1994, but
inflation has subsided since. Economic reform efforts continued with the
support of international organizations, notably the World Bank and the
IMF. The reform program came to a halt in June 1997 when civil war
erupted. Denis SASSOU-NGUESSO, who returned to power when the war ended in
October 1997, publicly expressed interest in moving forward on economic
reforms and privatization and in renewing cooperation with international
financial institutions. However, economic progress was badly hurt by
slumping oil prices and the resumption of armed conflict in December 1998,
which worsened the Republic of the Congo's budget deficit. Even with the
IMF's renewed confidence and high world oil prices, Congo is unlikely to
realize growth of more than 5% in 2001-02. With the return to fragile
peace, the IMF approved a $14 million credit in November 2000 to aid
post-conflict reconstruction. GDP: purchasing power parity -
$3.1 billion (2000 est.) SOURCE: The World Factbook |
Mother Earth Travel > Country Index > Republic of the Congo > Map Economy