The Congolese economy, which is experiencing its worst recession in twenty years, with a decline of -8.6% in 2020, may experience a growth rebound of 0.5% next year, according to the authorities.
Economic activities in the Republic of the Congo are trying to recover from the double financial and health crisis caused by the collapse in oil prices and the restrictive measures taken by the government to stop the spread of the coronavirus pandemic. Domestic demand is expected to decline this year by -40.6%, against 0.7% in 2019, as are imports and exports, which are expected to decline by 46.6% and 56.2% respectively.
During its Council of Ministers on October 5, the Congolese government painted a grim picture of the national economic situation, while remaining optimistic for the coming months. “On the supply side, this recession can be explained by the underperformance of all industries. The non-oil sector would continue to slow down in connection with the more pronounced decline in economic activity in the forestry and logging, transport and telecommunications sectors, as well as public administrations, “said the report of the Council of Ministers.
The 2021 draft budget presented during this council is ambitious in terms of restoring macroeconomic balance, through the pursuit of a prudent fiscal policy. The government ensures that the budgetary guidelines will be consistent with the main axes of the National Development Plan already validated within the framework of the current budget law, based on an economic policy aimed at stabilizing and reviving the economy. the national economy.
Indeed, the future budget will focus on investment spending promoting the return to activity and employment. To do this, the State will finance the finalization of the Pointe-Noire central market site; the establishment of the economic zone of Maloukou; rehabilitation and resizing of National Route 2. The executive is also counting on the envelope of 300 billion FCFA mobilized by the Brazzaville Club for the partial payment of the domestic debt.
Regarding treasury charges, according to the Council of Ministers, debt restructuring remains the main point of the overall strategy. As a result, the Congolese state will have to face charges related to the amortization of the debt to external and domestic partners, in particular the amortization of the external debt (570 billion FCFA); guarantees and endorsements (15 billion FCFA); the repayment of bonds (48.1 billion FCFA) and the repayment of domestic debt (156 billion CFA).
