The primary source of hyperinflation has been unbridled monetization of an uncontrolled budgetary deficit. The Central Bank of the Congo (BCC) has lost control of monetary policy, and its role has been reduced to financing the fiscal deficit. The IMF staff agrees with the government that...

Congo’s economic program aims to enhance macroeconomic stability and advance reforms to bolster economic management and improve the supply response of the economy. Progress in implementing the program has been affected negatively by the continuation of conflict. Fiscal policy aims at reducing...

This paper reviews Congo’s Performance Under the Staff-Monitored Program (SMP) and Request for a Three-Year Arrangement Under the Poverty Reduction and Growth Facility. Improvements in the political environment and an increased focus on economic management since late 2002 have already led to...

This Selected Issues paper on the Republic of Congo analyzes the challenges of sustainable growth in the Republic of Congo. The paper highlights that it is paramount for the authorities to avoid repeating the experience of the 1980s, particularly in light of the projected decline in oil...

This 2007 Article IV Consultation highlights that the implementation of the Poverty Reduction and Growth Facility (PRGF)-supported program was broadly satisfactory for Congo in 2004–05. However, expenditure overruns and delays in structural reforms pushed the program off track in 2006....

In this study, economic performance remained robust throughout the global downturn, and shows signs of further strengthening. In 2010, the external position improved significantly, as fiscal surpluses raised official foreign assets, and the Highly Indebted Poor Countries (HIPC) debt relief...

With the Heavily Indebted Poor Countries (HIPC) completion, Congo’s prospects for achieving sustained growth and poverty reduction have improved. The HIPC completion reduced debt service obligations and increased the resilience of external debt indicators to shocks. Non-oil revenue is improved...

This paper examines the Republic of Congo’s 2003 Article IV Consultation and a New Staff-Monitored Program (SMP). Performance under IMF-supported programs and recent SMPs was disappointing. Major progress has been made in consolidating security and peace, and in establishing democratic...

This Selected Issues Paper for the Republic of Congo discusses economic development and policies. Domestic prices of refined petroleum products are administratively set by the authorities below import parity. Non-oil revenue in 2007 has remained about 20 percent of non-oil GDP, compared with...

This paper on the Republic of Congo’s staff-monitored program (SMP) reports that the authorities and civil society pledged to work together to make resource management more transparent. The authorities have reached understandings with IMF staff on an SMP for April-September 2007. The SMP aims...