The National Monetary and Finance Committee of Congo met in an ordinary session on the 3 November 2016 in the premises of Alima Palace hotel, in Ollombo, under the presidency of Mr. Calixte NGANONGO, Minister of Finance, Budget and Public Portfolio, assisted by Mrs. Ingrid Olga Ghislaine EBOUKA-BABACKAS, Minister of Plan, Statistics and Regional Integration, and in the presence of Mr. Lucas ABAGA NCHAMA.
Mrs. Sylvanie Sigismonde KAYA, second deputy national director took down minutes of the meeting.
During this session, the Committee acknowledged the evolution of world and national economy during the second quarter of 2016 as well as short-term perspectives.
The Committee noted that at the end of the second quarter of 2016, world economic activity remained generally morose in the wake of Chinese slow down, political uncertainty and financial volatility. Trade and inflation remained weak. In this context, the IMF lowered its world growth forecast to 3.1% instead of the initial forecast of 3.2%.
Foreign exchange markets were dominated with yet another increase of the Euro against the Dollar, notably due to very encouraging economic indicators within the Euro zone.
The prices of major basic commodities and raw materials exported by Congo have remained low, due to low levels of world demand and supply.
This unfavourable international context affected the Congolese macro-economy as presented below by sector of activity:
In the primary sector, the activity was marked by a drop in oil production due to the ageing of various oil fields, and to the low production (below estimated rates) of Moho-North (Phase 1) and Lianzi oil fields. It was also marked by a good handling of agricultural, husbandry and fishing activities ;
Activities of the secondary sector has been seriously affected by the drop in internal demand ;
Activities of the tertiary sector registered an unsatisfactory evolution, notably with activities of general trade and telecommunications.
The inflation rate stood below the community standard of 3.0%.
Concerning the monetary situation as at August 2016, the Committee underscored a mitigated increase, marked by a drop in the monetary mass and in net foreign assets on one hand and a rise in domestic credit on the other hand. The external currency coverage rate stands at 56.8%, a level higher than the minimal standard of 20%.
As for the banking situation, the Committee noted a drop in collected deposits and a rise in net costumer loans. The rate of coverage of loans by deposits stood at 117.4% as against 159.3% the previous year.
While examining the Congolese macro-economic perspectives for the year 2016, the Committee stated that recent BEAC projections bank on an increase in GDP in real terms which would drop to 1.8% as against 2.4% in 2015. This decline would come mainly as a result of the near stagnation of oil production, in a context marked the depression of the international crude oil market. Inflationary tensions would have to reduce, particularly due to the expected drop in domestic demand and low imported inflation.
Finally, the Committee acknowledged the decisions of different bodies of BEAC and CEMAC. /
Done at Ollombo, 3 November 2016
The President of the National
Monetary and Finance Committee