IMF Staff Country Reports

This paper presents Democratic Republic of the Congo’s Fifth Review under the Extended Credit Facility, Requests for Modification of Quantitative Performance Criteria, Waivers of Nonobservance of Performance Criteria, and Financing Assurances Review. The Democratic Republic of the Congo’s growth remains resilient despite the negative terms-of-trade shocks and the security and humanitarian crisis linked to the armed conflict in the east of the country. The 2023 domestic fiscal deficit, though narrower compared to 2022, is expected to widen relative to the fourth review due to lower-than-envisaged revenues and insufficient adjustment in spending, which was reprioritized toward security and elections. Notwithstanding the challenging socio-political and security situation, the authorities remain committed to preserving program objectives, including by limiting macroeconomic slippages and continuing implementing the economic reform agenda. While growth remains resilient, fiscal, depreciation and inflationary pressures are high. This challenging macroeconomic context calls for prudent fiscal policies, including curbing nonessential spending and improving spending efficiency, governance, and transparency. Efforts to strengthen monetary policy implementation are also warranted.