IMF Now Sees Economic Growth in Congo Republic After Contraction

(Bloomberg) --

Republic of Congo’s economic output will return to growth of about 0.2% this year, after its gross domestic product shrank by 8% in 2020, the International Monetary Fund estimates.

While measures introduced to curb the coronavirus pandemic are rolled back this year, factors such as domestic arrears and structural weaknesses will continue to be a drag on non-oil economic growth, the lender said in a statement.

Highlights:

• The non-oil primary deficit improved to 15% as non-oil revenus held up, but is seen expanding to 17% this year due to spending to mitigate the pandemic.
• Improved oil revenue this year will raise the overall fiscal position into a surplus.
• Debt remains unsustainable after hitting 103% of GDP in 2020. The IMF expects it to drop below 100% of GDP this year after debt-service relief under the G-20 Debt Service Suspension Initiative.

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