Chad: 2008 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Chad

IMF Staff Country Reports, February 20, 2009

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Chad: 2008 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Chad

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Bibliographic details

• Published: February 20, 2009
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781451836509.002

Summary

• The staff report presents economic developments and policies for Chad’s 2008 Article IV Consultation.
• The global economic crisis has affected Chad’s budget and reserves through lower oil prices.
• Chad’s limited financial and trade integration has insulated it from the financial crisis and ensuing global recession.
• Chad is seriously affected by declining oil prices, which will require substantial fiscal adjustment and will lower reserves, albeit not to critical levels.

Key economic impacts and findings

• Lower oil prices have reduced budgetary revenues and reserves.
• Limited financial and trade integration reduced direct exposure to the global financial crisis and global recession.
• The fiscal position faces notable strain due to oil revenue declines.

Risks identified

• Lower demand for exports could further weaken external performance.
• Weaknesses in the foreign banks that own most of Chad’s banking system pose financial sector risks.

Policy implications and recommendations

• Substantial fiscal adjustment is required to respond to declining oil prices.
• Policies should aim to manage reserve reductions to avoid critical levels while addressing budgetary shortfalls.

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