## IMF Staff Concludes Visit to Comoros for the 2019 Article IV Consultation and Discussions on Engagement in 2020

_IMF News, December 20, 2019_

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## Bibliographic details
- Published: December 20, 2019

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### Mission overview and engagements
- Press Release No. 19/482; December 20, 2019.
- An IMF team, led by Hans Weisfeld, visited Comoros during December 11-20, 2019 to conduct 2019 Article IV consultations and discuss options for engagement in 2020.
- Meetings included President Azali Assoumani, Minister of Finance and Budget Said Ali Said Chayhane, Central Bank Governor Younoussa Imani, other high-level officials, private sector representatives, and the donor community.

### Economic assessment and recent developments
- 2019 characterized as a challenging year for Comoros’ economic development, driven by the negative impact of Cyclone Kenneth (struck in April) and difficulties at several state-owned enterprises.
- Key 2019 indicators and assessments:
  - Growth for the year as a whole is projected to fall to about 1.9 percent.
  - Inflation remains contained (at 3.3 percent).
  - Fiscal revenue as a share of GDP fell, driven by the impact of the cyclone on the economy and difficulties at several state-owned enterprises.
  - Growth of credit to the private sector remained weak, due in part to a challenging operating environment for banks.

### Near-term outlook
- For 2020:
  - Growth is expected rebound to 4-4½ percent.
  - Inflation should come down (to below 2 percent).
  - Difficulties in several state-owned enterprises will likely continue to weigh on fiscal revenue.

### Policy recommendations and reform priorities
- Institutional reforms to address fragility:
  - Strengthen the civil service.
  - Enhance governance.
  - Reinforce the judicial system to better protect property rights and help private parties enforce contracts.
- Economic measures to address fragility and support emergence:
  - Create fiscal space and use it to raise investment in both physical and human capital, including through higher social spending.
  - Lessen vulnerability to shocks such as natural disasters.
  - To create fiscal space, raise fiscal revenue, for example by reducing tax exemptions and registering more taxpayers.

### Next steps and engagement
- The IMF team discussed options for engagement with the Comoros authorities in 2020.
- IMF mission expressed thanks to the authorities for constructive discussions and warm hospitality.

*Source: IMF Press Release No. 19/482, December 20, 2019.*

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## References

- [Union of the Comoros and the IMF](http://www.imf.org/external/country/COM/index.htm)
- [IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)
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_Source: https://www.imf.org/en/news/articles/2019/12/20/pr19482-comoros-imf-staff-concludes-visit-for-the-2019-article-iv-consultation_