Chad: Selected Issues

IMF Staff Country Reports, July 31, 2019

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Chad: Selected Issues

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Bibliographic details

• Published: July 31, 2019
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781513509648.002

Overview and purpose

• Explores non-oil growth impediments in Chad to better understand why the Chadian economy has not sufficiently rebounded from the crisis.
• Discusses crisis legacies—high public debt and a fragile banking sector—and long standing structural weaknesses that hamper potential growth.
• Examines how fiscal policy, the non-oil private sector, and the banking sector remain affected by the recession and subsequent policy responses.
• Concludes with discussion of reforms required to foster economic diversification and unlock Chad’s economic potential.

Key findings on crisis legacies

• Three years of recession in Chad have left important legacies that continue to affect fiscal policy and performance in the non-oil private sector and the banking sector.
• Public domestic debt more than doubled with the crisis.
• As the Chadian economy was hit by the oil shock, while dramatically cutting spending, the government had to rely on large domestic financing to cushion the impact of the shock.
• Although the government started paying arrears, the remaining stock is very large and presents a drag on the non-oil economy.

Structural weaknesses constraining growth

• The economy is held back by:
  • High public debt levels and large arrears.
  • A fragile banking sector.
  • Long standing structural weaknesses that limit potential growth and economic diversification.

Policy implications and reform priorities

• Reforms are required to address crisis legacies and structural weaknesses to foster economic diversification.
• Key policy directions implied by the analysis:
  • Continue reducing and managing public domestic debt and arrears to alleviate drag on the non-oil economy.
  • Strengthen the banking sector to support private-sector-led non-oil growth.
  • Implement structural reforms aimed at removing barriers to diversification and raising potential growth.

Publication metadata and key statistics

• Pages: 39
• Volume: 2019
• Issue: 259
• Series: Country Report No. 2019/259
• Stock No: 1TCDEA2019003
• DOI: https://doi.org/10.5089/9781513509648.002
• ISBN: 9781513509648
• ISSN: 1934-7685
• Subject: Arrears, Commercial banks, Corruption, Crime, Education, External debt, Financial institutions, Health

International Monetary Fund. African Dept. "Chad: Selected Issues", IMF Staff Country Reports 2019, 259 (2019).

Content in this bundle

• Chad: Selected Issues; IMF Country Report No. 19/259; June 18, 2019
  • Chad: Selected Issues; IMF Country Report No. 19/259; June 18, 2019 (Markdown version)
  • Chad: Selected Issues; IMF Country Report No. 19/259; June 18, 2019 (PDF)