The International Monetary Fund (IMF), has increased the GDP growth of the Democratic Republic of Congo to 8.5 per cent in 2022 due to a boost in production within the mining sector.
The IMF’s previous report from December had predicted a GDP growth of 6.6 per cent for 2022, but the latest report states that early data indicate much more substantial real GDP growth than initially anticipated.
After a week-long staff visit to Kinshasa, the IMF projected that the country’s growth would reach 8% this year. However, the organization cautioned that there are risks associated with the ongoing armed conflict in the country’s eastern region. This conflict has been going on for decades and has been exacerbated by various militias vying for control over the country’s mineral-rich provinces.
Despite the potential risks, the IMF noted that mining production has been strong, growing at around 20 per cent. This has more than made up for a downward revision in non-extractive growth, which now stands at 3.2 per cent, down from 3.9 per cent. However, the country has also seen a rise in inflation, with rates reaching 13.1 per cent at the end of 2022.
The IMF warned of further uncertainty due to the upcoming general elections in December, the ongoing conflict in Ukraine, and adverse terms-of-trade shocks. Preliminary data indicates that the country’s current account deficit has widened due to increased import growth and unfavourable terms of trade. However, the central bank reported more gross international reserves than initially projected.
Unfortunately, the overall fiscal balance for 2022 is expected to have deteriorated due to arrears payments and increased spending on security in the eastern region.
Read Also: IMF Approves $87 Million Loan to the Republic of Congo for Budgetary Support
