National Economic and Financial Committee (CNEF) of Congo
“In 2023, Congo’s growth would amount to 3.7%”
24 Mar, 2023
Jean-Baptiste Ondaye, Congolese Minister of Economy and Finance, chaired the meeting of the National Economic and Financial Committee (CNEF) of the Republic of Congo, session of Friday, March 24, 2023, at the headquarters of the Bank of the States of the Central Africa (BEAC). The work took place both face-to-face in Brazzaville (Congo) and by videoconference in Yaoundé (Cameroon) and Libreville (Gabon). According to the final press release, "in 2023, Congo's growth would amount to 3.7%".
The agenda for the first meeting of the year focused on several points. Among which point three comprising Notes on the national economic, monetary and financial situation; on the financing of the Congolese economy; on the budget execution at the end of December 2022 of the CNEF-Congo; and the resolution on the modalities of contribution to the CNEF-Congo Budget.
According to the final press release, "at the international level, the Committee noted a slowdown in the world economy in the 4th quarter of 2022, with a growth rate of Gross Domestic Product (GDP) which fell to 1.1% against 1, 6% in the quarter of 2022, due to the repercussions of the war in Ukraine and the drop in demand caused by the tightening of monetary policies by the main central banks.
Thus, the outlook for the World Economy, published in January 2023 by the International Monetary Fund (IMF), estimated world real GDP growth at 3.4% in 2022 against 6.1% in 2021. For the year 2023 , this rate would be 2.9%.
At the sub-regional level, the Committee noted a consolidation of economic activities, notwithstanding the persistence of inflationary pressures, the impact of the Ukrainian crisis and the disruption of supply chains which continue to weigh on the economies of the sub-region.
In this context, the zone's GDP growth rate should increase to 2.9% in 2022, against 1.7% in 2021, thanks in particular to the recovery of the non-oil sector and the favorable trend in the terms of the exchange. In 2023, the BEAC forecasts a rate of 2.6%.
At the national level, the Committee noted an upturn in activity in the non-oil sector, mainly in connection with the good performance of the Services sector, the settlement of domestic debt arrears and the continuation of oil investments.
However, this recovery was hampered by the drop in oil production, despite the good performance of oil costs.
As a result, the real GDP growth rate was estimated at 1.4% in 2022, after a recession of 1.5% in 2021.
On the price front, inflation reached the Community threshold of 3% on annual average, against 2.3% a year earlier. In 2023, Congo's growth would amount to 3.7%.
Examining the different modes of financing the Congolese economy, the Committee noted a mixed evolution of the situation of the national banking system.
In fact, the outstanding gross credit granted to customers contracted by 11% to return to 1,281.6 billion as of December 31, 2022. Similarly, outstanding debts fell by 25% for this year, to 181.4 billion. On the other hand, on the Central African Economic and Monetary Community (CEMAC) Treasury Securities Market, the Congolese Public Treasury remained very active, mobilizing 758.4 billion CFA francs between January and December 2022, i.e. a decrease of 15.64% compared to the previous year.
The Committee then took note of the budget execution of its General Secretariat for the 2022 financial year.
The Committee also wished to express its congratulations to the Congolese government for the validation by the Board of Directors of the International Monetary Fund (IMF), on February 6, 2023, of the second review of the Economic and Financial Program (PEF) supported by the Facility. Extended Credit Facility (FEC) and encouraged it to continue implementing this Program in order to strengthen the country's macroeconomic stability.
Finally, the Committee took note of the decisions of the 15th Summit of CEMAC Heads of State, which was held in Yaoundé on March 17, 2023”.
The Communication Unit of the Ministry of Economy and Finance