## Chad: Selected Issues

_IMF Staff Country Reports, July 31, 2019_

## Source details

**Canonical URL:** [Chad: Selected Issues](https://www.imf.org/en/publications/cr/issues/2019/07/31/chad-selected-issues-48548)

## Other formats

- [Markdown version](/en/publications/cr/issues/2019/07/31/chad-selected-issues-48548/index.md)
- [Structured JSON version](/en/publications/cr/issues/2019/07/31/chad-selected-issues-48548/index.json)
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## Bibliographic details
- Published: July 31, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513509648.002

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### 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).*

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## 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)](/-/media/files/publications/cr/2019/1tcdea2019003.pdf.md){rel="alternate" type="text/markdown"}
  - [Chad: Selected Issues; IMF Country Report No. 19/259; June 18, 2019 (PDF)](/-/media/files/publications/cr/2019/1tcdea2019003.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2019/07/31/chad-selected-issues-48548_