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BRAZZAVILLE — Congo Republic’s economy will contract 0.5% this year before returning to growth of 2.3% in 2022, according to the state budget for next year adopted by the government on Thursday.
Oil is the lifeblood of Congo’s economy, but a sharp drop in crude prices in 2014 left it with debt of nearly $9.5 billion. The coronavirus crisis and a collapse in crude prices added further pressure, leading to economic decline of 5.8% last year.
Government spokesperson Thierry Lézin Moungalla said the new budget foresaw oil production of 110 million barrels in 2022 at an average price of $64. Under its 2021 budget revised in July, Congo Republic expects to produce 109 million barrels of oil this year at a price of $58 per barrel.
Priorities include diversifying the economy to improve resilience to future downturns, he said.
In September, the International Monetary Fund said Congo Republic’s “outlook is subject to high uncertainty amid risks of new waves of the pandemic, volatile oil revenue prospects, climate change shocks, and successful reform implementation.” (Reporting by Christian Elion Writing by Alessandra Prentice; editing by Diane Craft)
Congo Republic sees economy shrinking 0.5% this year - Financial Post
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