Republic of Congo: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Congo

IMF Staff Country Reports, January 27, 2020

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Canonical URL: Republic of Congo: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Congo

Economic situation remains difficult, but there are initial signs of stability.
Non-oil growth could turn positive for the first time since 2015.
In the near term, the expansion of oil production explains most of the projected recovery in growth.
Peak oil production will be reached in 2020 rather than 2019 as initially expected.
Non-oil growth is expected to pick up gradually as the government starts implementing its arrears clearance strategy, which could have a positive impact on business confidence and credit growth.
Political environment is stable, though there is discontent with government policies due in part to the authorities’ limited engagement with the private sector and civil society.

The report recommends pursuing fiscal consolidation efforts to restore fiscal sustainability.
Conclude the debt restructuring process for external commercial debt to restore fiscal sustainability.
It is imperative to continue to implement measures to improve governance and tackle corruption, including through the adoption of operational decrees for the High Authority on Corruption and the Commission on Transparency.
Subject tags included in the source: Arrears, External debt, Fiscal policy, Fiscal stance, Public debt, Public financial management (PFM).

Implementation of the arrears clearance strategy is expected to support non-oil activity through improved business confidence and credit growth.
Fiscal consolidation and completed external commercial debt restructuring are central to restoring fiscal sustainability and reducing debt vulnerability.
Strengthened governance and anti-corruption measures (operational decrees for the High Authority on Corruption and the Commission on Transparency) are highlighted as essential for reform credibility.