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The country’s fiscal policy will need to maintain a balance between supporting a robust economic recovery and safeguarding debt sustainability. An International Monetary Fund (IMF) team led by Pritha Mitra, Chief of Mission for the Republic of Congo , undertook a virtual mission with the Congolese authorities from March 31 to April 18, 2022, to discuss the first review of the three-year arrangement for the Republic of Congo under the Extended Credit Facility Agreement. “The IMF team has reached a staff-level agreement with the authorities of the Republic of Congo on the completion of the first review under the Extended Credit Facility (ECF), which will be subject to approval of the IMF’s Executive Board,” Ms. Mitra said. According to her, the country’s economic recovery is accelerating but remains fragile in the context of the Covid-19 pandemic and the global consequences of the war in Ukraine. Real GDP growth is expected to strengthen to 4.3% in 2022, driven by improved oil production, dynamism in the agriculture and mining sectors, continued vaccination operations and the payment of domestic arrears, which contributed to the reduction of non-performing loans and the stability of the financial sector. The Bretton Woods institution official said stronger economic activity is being held back by rising inflation, forecast at 3.5%, due to soaring global food and food prices. oil due to the war in Ukraine. High oil prices, if sustained, will benefit the Congolese economy, but there are great uncertainties surrounding oil price projections. “The debt is considered viable following bold operations for its restructuring and the implementation of a prudent budgetary policy. Nonetheless, debt vulnerabilities remain significant, especially in a context of high oil price volatility. Pending clearance of some external arrears, the debt is classified as “distressed”, Pritha Mitra said. She noted critical progress in procurement, debt and public finance management , including public investment to avoid the accumulation of new domestic and external arrears, and to improve the efficiency and quality of public expenditure. debt management reforms will also consolidate recent progress in governance and transparency,” noted the IMF mission chief in Congo.

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