Central African Republic Economic Update, November 2019 : Strengthening Domestic Revenue Mobilization to Sustain Growth in a Fragile State
The Central African Republic (CAR) economy continues on a downward path. With an average GDP growth per capita of -0.8 percent, CAR has not experienced an episode of sustained growth since its independence. Economic growth in CAR slowed to 3.7 perc...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/380841574268248141/Central-African-Republic-Economic-Update-Strengthening-Domestic-Revenue-Mobilization-to-Sustain-Growth-in-a-Fragile-State http://hdl.handle.net/10986/32793 |
| Summary: | The Central African Republic (CAR)
economy continues on a downward path. With an average GDP
growth per capita of -0.8 percent, CAR has not experienced
an episode of sustained growth since its independence.
Economic growth in CAR slowed to 3.7 percent in 2018 as
renewed insecurity inhibited economic activity, disrupted
agricultural, forestry, and mining production, and delayed
investment projects. Inflation declined to 1.6 percent in
2018 and should reach the CEMAC convergence criterion in the
medium term as manufacturing and food prices dropped. The
debt-to-GDP ratio continues to decrease and should reach 49
percent in 2018, with an overall balance including grants of
0.4 percent of GDP. However, government revenue remains
below its pre-crisis level. The current account deteriorated
slightly at 7.8 percent of GDP in 2018 as imports continue
to soar. CAR’s external position should improve in the
medium-term. CAR’s economic prospect is positive with the
signing of the Political Agreement for Peace and
Reconciliation in the Central African Republic in February
2019 and projected to grow at 4.8 percent in the
medium-term. The primary risk for CAR is the possible
escalation of violence that will undermine the government’s
ability toprovide basic services. This is the second edition
in a series of Central African Republic Economic Updates.
The series will analyze evolving economic trends in CAR on
an annual basis to assist the government and its development
partners to identify emerging opportunities and address
persistent challenges. The editions are prepared for the
World Bank Spring Meetings in April. Each edition presents
an overview of CAR’s evolving macroeconomic position,
followed by a detailed exploration of a specific topic. The
objectives of the series are to strengthen the analytical
underpinnings of development policy in CAR and contribute
to an informed debate on policy options to enhance
macroeconomic management and accelerate progress on the twin
goals of eliminating extreme poverty and promoting shared
prosperity in a context of state fragility. |
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