Congo, Republic of the Economy 2007

Economy - overview:
The economy is a mixture of village agriculture and handicrafts, an industrial sector based largely on oil, support services, and a government characterized by budget problems and overstaffing. Oil has supplanted forestry as the mainstay of the economy, providing a major share of government revenues and exports. In the early 1980s, rapidly rising oil revenues enabled the government to finance large-scale development projects with GDP growth averaging 5% annually, one of the highest rates in Africa. The government has mortgaged a substantial portion of its oil earnings through oil-backed loans that have contributed to a growing debt burden and chronic revenue shortfalls. Economic reform efforts have been undertaken with the support of international organizations, notably the World Bank and the IMF. However, the reform program came to a halt in June 1997 when civil war erupted. Denis SASSOU-NGUESSO, who returned to power when the war ended in October 1997, publicly expressed interest in moving forward on economic reforms and privatization and in renewing cooperation with international financial institutions. Economic progress was badly hurt by slumping oil prices and the resumption of armed conflict in December 1998, which worsened the republic's budget deficit. The current administration presides over an uneasy internal peace and faces difficult economic challenges of stimulating recovery and reducing poverty. Recovery of oil prices has boosted the economy's GDP and near-term prospects. In March 2006, the World Bank and the International Monetary Fund (IMF) approved Heavily Indebted Poor Countries (HIPC) treatment for Congo.

GDP (purchasing power parity):
$5.033 billion (2006 est.)

GDP (official exchange rate):
$5.098 billion (2006 est.)

GDP - real growth rate:
6.1% (2006 est.)

GDP - per capita (PPP):
$1,400 (2006 est.)

GDP - composition by sector:
agriculture: 5.6%
industry: 57.1%
services: 37.3% (2006 est.)

Labor force:
NA

Unemployment rate:
NA%

Population below poverty line:
NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices):
5.5% (2006 est.)

Investment (gross fixed):
25.3% of GDP (2006 est.)

Budget:
revenues: $3.522 billion
expenditures: $1.932 billion (2006 est.)

Agriculture - products:
cassava (tapioca), sugar, rice, corn, peanuts, vegetables, coffee, cocoa; forest products

Industries:
petroleum extraction, cement, lumber, brewing, sugar, palm oil, soap, flour, cigarettes

Industrial production growth rate:
0% (2002 est.)

Electricity - production:
7.341 billion kWh (2005)

Electricity - consumption:
5.272 billion kWh (2005)

Electricity - exports:
1.8 billion kWh (2005)

Electricity - imports:
6 million kWh (2005)

Oil - production:
267,100 bbl/day (2005 est.)

Oil - consumption:
6,000 bbl/day (2004 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Oil - proved reserves:
1.506 billion bbl (1 January 2006)

Natural gas - production:
115.1 million cu m (2005 est.)

Natural gas - consumption:
115.1 million cu m (2005 est.)

Natural gas - exports:
0 cu m (2005 est.)

Natural gas - imports:
0 cu m (2005)

Natural gas - proved reserves:
86.9 billion cu m (1 January 2006 est.)

Current account balance:
$912 million (2006 est.)

Exports:
$5.854 billion f.o.b. (2006 est.)

Exports - commodities:
petroleum, lumber, plywood, sugar, cocoa, coffee, diamonds

Exports - partners:
US 35.9%, China 31.4%, Taiwan 9.9%, South Korea 8% (2006)

Imports:
$2.035 billion f.o.b. (2006 est.)

Imports - commodities:
capital equipment, construction materials, foodstuffs

Imports - partners:
France 21.7%, China 12.1%, Zimbabwe 8.3%, US 6.9%, India 6.4%, Italy 5.1%, Belgium 4.8% (2006)

Economic aid - recipient:
$1.449 billion (2005)

Reserves of foreign exchange and gold:
$1.848 billion (2006 est.)

Debt - external:
$5 billion (2000 est.)

Market value of publicly traded shares:
$NA

Currency (code):
Communaute Financiere Africaine franc (XAF); note - responsible authority is the Bank of the Central African States

Exchange rates:
Communaute Financiere Africaine francs (XAF) per US dollar - 522.59 (2006), 527.47 (2005), 528.29 (2004), 581.2 (2003), 696.99 (2002)