Republic of Congo: Second Review under the Three-year Extended Credit Facility Arrangement, Requests for Modification and Waivers of Nonobservance of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Congo

International Monetary Fund

No 2023/089, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper on Republic of Congo presents Second Review under the Three-Year Extended Credit Facility (ECF) Arrangement, Requests for Modification and Waivers of Nonobservance of Performance Criteria, and Financing Assurances Review. Strengthened economic recovery remains fragile amid high food inflation, driven by increased import costs following Russia’s war in Ukraine. Real gross domestic product growth in 2023 will be driven by improved oil production, a pickup in agriculture and mining activity, and government spending on development. Food inflation is expected to decelerate with the decline of international food prices. Key risks stem from lower oil prices and production and weak reform implementation. Three out of five performance criteria, one indicative target, and one structural benchmark were missed. Strong corrective actions were taken, including reducing oil-related subsidies, rapidly renegotiating external arrears payments, and addressing declaration shortfalls in the decree on conflict-of-interest rules. The authorities continue to pursue higher, more resilient, and inclusive growth while maintaining macroeconomic stability and debt sustainability.

Keywords: IMF TA; PC table; quantitative Performance Criteria; overburdened staff; reorganization of the CCA; Arrears; Fiscal stance; Oil, gas and mining taxes; Global (search for similar items in EconPapers)
Pages: 124
Date: 2023-02-15
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