Wednesday July 5, 2023, at the headquarters of the Bank of Central African States (BEAC) in Brazzaville, the ordinary meeting of the National Economic and Financial Committee (CNEF) was held, chaired by Jean-Baptiste Ondaye, Congolese Minister of Economy and Finance, President of the CNEF. This session was attended by his colleague, Ludovic Ngatsé, Minister of Budget, Public Accounts and Public Portfolio, Marcel Ondélé, Deputy Secretary General of the Central African Banking Commission (COBAC) and, by videoconference, Michel Dzombala , Vice-Governor of the BEAC and Jacqueline Adiaba Nkembe, President of the Central African Financial Market Supervisory Commission (COSUMAF). It emerged from the session that economic activity should consolidate in 2023, with a real gross domestic product (GDP) growth rate of +2.3%.

During this meeting, according to the press release, the Committee first took note of the national, sub-regional and international economic situation for the first quarter of the current year, as well as the prospects for the end of the year. year 2023. He then examined the evolution of the different methods of financing the Congolese economy during the period under review.

On the national level, the Committee noted a generally satisfactory development in economic activity, mainly linked to the relaunch of investments in the oil sector, the improvement in the manufacturing industry and the regular payment of salaries of agents of the State and retirement pensions. As a result, economic activity should consolidate in 2023, with a real gross domestic product (GDP) growth rate of +2.3%, compared to +0.4% in 2022. On the price front , inflation, measured as an annual average, rose to 3.2% at the end of March 2023, after 2.1% a year earlier.

In perspective, price pressure is expected to keep the inflation rate above the community norm, at 3.6%, compared to 3.0% in 2022, mainly in relation to imported inflation and rising prices. fuel at the pump.

Examining the different methods of financing the Congolese economy, the Committee noted mixed developments in the activity of the national banking system. Indeed, the outstanding gross credits granted to customers experienced a contraction of 5.2%, returning to 1,338.1 billion CFA francs as of April 30, 2023, and a decline in overdue debts of 2.9%. , to stand at 253.4 billion CFA francs. On the other hand, on the public securities market of the Central African Economic and Monetary Community (CEMAC), the Congolese public treasury remained active, thus mobilizing financing to the tune of 612.9 billion CFA francs at the end of April 2023 , an increase of 37.1% compared to the amount raised a year earlier. This development brought the outstanding amount of Congolese public securities to 1,857.2 billion CFA francs, which represents 31.8% of the CEMAC total.

At the sub-regional level, the Committee noted a slowdown in economic activities, due to the persistence of inflationary pressures and the deterioration of the terms of trade. In this context, the region's GDP growth rate is estimated at 1.8% in the first quarter of 2023, compared to 2.9% in the same period of the previous year. In 2023, the BEAC forecasts a rate of 2.4% compared to 3.0% in 2022.

Internationally, the Committee noted the weakness in global economic activity in the first quarter of 2023, mainly due to the drop in demand. This is affected mainly by: firstly, the gradual tightening of central banks' monetary policies with a view to countering persistent strong inflationary pressures, and secondly, the restrictive effects of the war in Ukraine on world trade. Thus, the International Monetary Fund (IMF), in the World Economic Outlook, published in April 2023, revised downwards its forecast for global growth in 2023, to 2.8% instead of 2.9% initially. expected, compared to 3.4% in 2022.

The Committee took note of the conclusions of the Summit for a new global financial compact which was held in Paris on June 22 and 23, 2023, around three main themes, namely: 1) the reform of Breton Woods institutions and banks multilateral development; 2) mobilizing private capital and financing for climate and green infrastructure; and 3) the response to debt issues.

The Communication Unit of the Ministry of Economy and Finance

Photo credits : B2B Communication