Currency |
|
---|---|
Calendar year | |
Trade organisations | AU, AfCFTA (signed), WTO, ECCAS |
Country group | |
Statistics | |
GDP | |
GDP rank | |
GDP growth |
|
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
2.6% (2020 est.) [3] | |
Population below poverty line | |
56.2 high (2008) [7] | |
Labour force | 1,919,063 (2019) [10] |
Unemployment | 6.5% (2019) [11] [note 1] |
Main industries | gold and diamond mining, logging, brewing, textiles, footwear, assembly of bicycles and motorcycles |
External | |
Exports | $113.7 million (2017 est.) [4] |
Export goods | diamonds, timber, cotton, coffee, buttonquail |
Main export partners | |
Imports | $393.1 million (2017 est.) [4] |
Import goods | food, textiles, petroleum products, machinery, electrical equipment, motor vehicles, chemicals, pharmaceuticals |
Main import partners |
|
−$163 million (2017 est.) [4] | |
Gross external debt | $779.9 million (31 December 2017 est.) [4] |
Public finances | |
52.9% of GDP (2017 est.) [4] | |
−0.9% (of GDP) (2017 est.) [4] | |
Revenues | 282.9 million (2017 est.) [4] |
Expenses | 300.1 million (2017 est.) [4] |
$304.3 million (31 December 2017 est.) [4] | |
All values, unless otherwise stated, are in US dollars. |
The economy of the Central African Republic is $2.321 billion by gross domestic product as of 2019, even lower than much smaller countries such as Barbados [12] [13] with an estimated annual per capita income of just $529 as measured nominally in 2024.
Sparsely populated and landlocked, the Central African Republic is overwhelmingly agrarian. [13] The vast bulk of the population engages in subsistence farming and 55% of the country's GDP derives from agriculture. [13] Subsistence agriculture, together with forestry, remains the backbone of the economy of the Central African Republic (CAR), with more than 70% of the population living in outlying areas. [14]
Principal food crops include cassava, peanuts, sorghum, millet, maize, sesame, and plantains. Principal cash crops for export include cotton, coffee, and tobacco. [15] Timber has accounted for about 16% of export earnings and the diamond industry for nearly 54%. [14] Central African Republic is a least developed country according to United Nations.
Much of the country's limited electrical supply is provided by hydroelectric plants located in Boali. [13] Fuel supplies must be barged in via the Oubangui River or trucked overland through Cameroon, resulting in frequent shortages of gasoline, diesel, and jet fuel. [13] The C.A.R.'s transportation and communication network is limited. [13] The country has only 429 kilometers of paved road, limited international, and no domestic air service, and does not possess a railroad. [13]
River traffic on the Oubangui River is impossible from April to July, and conflict in the region has sometimes prevented shipments from moving between Kinshasa and Bangui. [13] The telephone system functions, albeit imperfectly. [13] Four radio stations operate in the C.A.R., as well as one television station. [13] Numerous newspapers and pamphlets are published on a regular basis, and one company provides Internet access. [16]
In 2014, the country exported 59.3 million US dollars of forest products. This accounts for 40% of total export earnings in the C.A.R. [17]
The country has rich natural resources in the form of diamonds, gold, uranium, and other minerals. [13] Diamonds constitute one of the most important exports of the CAR, frequently accounting for 20-30% of export revenues, but an estimated 30-50% of the diamonds produced each year leave the country clandestinely.[ citation needed ] There may be petroleum deposits along the country's northern border with Chad. [13] (Two billion barrels of oil are present in private estimates).[ citation needed ]
Diamonds are the only of these mineral resources currently being developed; reported sales of largely uncut diamonds made up close to 60% of the CAR's export earnings as of 2001. [13] Industry contributes less than 20% of the country's GDP, with artesian diamond mining, breweries, and sawmills making up the bulk of the sector. [13] Services account for 25% of GDP, largely because of government bureaucracy and high transportation costs arising from the country's landlocked position. [13]
74% (2013) of the population in the Central African Republic works in the agriculture industry, so Central African Republic's economy is dominated by the cultivation and sale of foodcrops such as yams, cassava, peanuts, maize, sorghum, millet, sesame, and plantains. The importance of foodcrops over exported cash crops is illustrated by the fact that the total production of cassava, the staple food of most Central Africans, ranges between c. 200,000 and 300,000 tons a year, while the production of cotton, the principal exported cash crop, ranges from c. 25,000 to 45,000 tons a year.
Foodcrops are not exported in large quantities but they still constitute the principal cash crops of the country because Central Africans derive far more income from the periodic sale of surplus foodcrops than from exported cash crops such as cotton or coffee. Many rural and urban women also transform some foodcrops into alcoholic drinks such as sorghum beer or hard liquor and derive considerable income from the sale of these drinks. Much of the income derived from the sale of foods and alcohol is not "on the books" and thus is not considered in calculating per capita income, which is one reason why official figures for per capita income are not accurate in the case of the CAR.
The per capita income of the CAR is often listed as being around $400 a year, said to be one of the lowest in the world, but this figure is based mostly on reported sales of exports and largely ignores the more important but unregistered sale of foods, locally produced alcohol, diamonds, ivory, bushmeat, and traditional medicines, for example. The informal economy of the CAR is more important than the formal economy for most Central Africans. [18]
Central African Republic produced in 2019:
In addition to smaller productions of other agricultural products. [19]
The financial sector of the CAR, the smallest in the CEMAC, plays a limited role in supporting economic growth. Suffering from weak market infrastructure and legal and judicial frameworks, the financial system remains small, undeveloped, and dominated by commercial banks. Because of economic and security concerns, financial institutions, and particularly microfinance institutions (MFIs), have consolidated their business in the capital, Bangui, over the past few years. [20]
With less than 1% of the total population holding a bank account, access to financial services is extremely limited in the CAR. Microfinance accounts only for 1% of the total credit facilities, serving 0.5 percent of the population. Low levels of mobile penetration – which stand at 30%, a significantly lower percentage than in the rest of the continent – dampen the potential expansion of access to financial services through mobile technology. [20] In April 2022, the country announced that it will adopt the cryptocurrency bitcoin as legal tender. [21]
The CAR is heavily dependent upon multilateral foreign aid and the presence of numerous NGO's which provide numerous services which the government fails to provide. As one UNDP official put it, the CAR is a country "sous serum," or a country hooked up to an IV (Mehler 2005:150). The presence of numerous foreign personnel and organizations in the country, including peacekeepers and refugee camps, provides an important source of revenue for many Central Africans.[ citation needed ]
In the 40 years since independence, the CAR has made slow progress toward economic development. [13] Economic mismanagement, poor infrastructure, a limited tax base, scarce private investment, and adverse external conditions have led to deficits in both its budget and external trade. [13] Its debt burden is considerable, and the country has seen a decline in per capita gross national product over the last 40 years. [13]
Important constraints to economic development include the CAR's landlocked position, a poor transportation system, a largely unskilled work force, and a legacy of misdirected macroeconomic policies. [14] The 50% devaluation of the currencies of 14 Francophone African nations on 12 January 1994 had mixed effects on the CAR's economy. [14] Diamond, timber, coffee, and cotton exports increased, leading an estimated rise of GDP of 7% in 1994 and nearly 5% in 1995. [14]
Military rebellions and social unrest in 1996 were accompanied by widespread destruction of property and a drop in GDP of 2%. [14] Ongoing violence between the government and rebel military groups over pay issues, living conditions, and political representation has destroyed many businesses in the capital and reduced tax revenues for the government. [14]
The International Monetary Fund (IMF) approved an Extended Structure Adjustment Facility in 1998. [14] The government has set targets of annual 5% growth and 25% inflation for 2000–2001. [14] Structural adjustment programs with the World Bank and IMF and interest-free credits to support investments in the agriculture, livestock, and transportation sectors have had limited impact. [13] The World Bank and IMF are now encouraging the government to concentrate exclusively on implementing much-needed economic reforms to jump-start the economy and defining its fundamental priorities with the aim of alleviating poverty. [13] As a result, many of the state-owned business entities have been privatized and limited efforts have been made to standardize and simplify labor and investment codes and to address problems of corruption. [13] The Central African Government is currently in the process of adopting new labor and investment codes. [13]
The following table shows the main economic indicators in 1980–2017. [22]
Year | GDP (in bil. US$ PPP) | GDP per capita (in US$ PPP) | GDP (in bil. US$ nominal) | GDP growth (real) | Inflation (in Percent) | Government debt (Percentage of GDP) |
---|---|---|---|---|---|---|
1980 | 0.93 | 406 | 0.71 | −3.0% | 13.3% | ... |
1985 | 1.39 | 537 | 0.88 | 3.7% | 10.5% | ... |
1990 | 1.83 | 628 | 1.57 | −2.1% | −0.2% | ... |
1995 | 2.35 | 718 | 1.12 | 4.3% | 19.2% | ... |
2000 | 2.69 | 738 | 0.87 | −1.7% | 3.2% | 93% |
2005 | 2.69 | 752 | 1.41 | 2.5% | 2.9% | 109% |
2006 | 3.22 | 797 | 1.54 | 4.8% | 6.7% | 49% |
2007 | 3.45 | 841 | 1.76 | 4.6% | 0.9% | 49% |
2008 | 3.59 | 858 | 2.03 | 2.1% | 9.3% | 37% |
2009 | 3.68 | 863 | 2.06 | 1.9% | 3.5% | 21% |
2010 | 3.84 | 883 | 2.14 | 3.0% | 1.5% | 21% |
2011 | 4.05 | 913 | 2.44 | 3.3% | 1.2% | 22% |
2012 | 4.29 | 949 | 2.51 | 4.1% | 5.9% | 24% |
2013 | 2.76 | 599 | 1.69 | −36.7% | 6.6% | 39% |
2014 | 2.84 | 604 | 1.90 | 1.0% | 11.6% | 69% |
2015 | 3.01 | 627 | 1.70 | 4.8% | 4.5% | 64% |
2016 | 3.19 | 652 | 1.83 | 4.5% | 4.6% | 56% |
2017 | 3.37 | 677 | 2.07 | 4.0% | 3.8% | 53% |
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The economy of Angola remains heavily influenced by the effects of four decades of conflict in the last part of the 20th century, the war for independence from Portugal (1961–75) and the subsequent civil war (1975–2002). Poverty since 2002 is reduced over 50% and a third of the population relies on subsistence agriculture. Since 2002, when the 27-year civil war ended, government policy prioritized the repair and improvement of infrastructure and strengthening of political and social institutions. During the first decade of the 21st century, Angola's economy was one of the fastest-growing in the world, with reported annual average GDP growth of 11.1 percent from 2001 to 2010. High international oil prices and rising oil production contributed to strong economic growth, although with high inequality, at that time. 2022 trade surplus was $30 billion, compared to $48 billion in 2012.
The economy of Benin remains underdeveloped and dependent on subsistence agriculture and cotton. Cotton accounts for 40% of Benin's GDP and roughly 80% of official export receipts. There is also production of textiles, palm products, and cocoa beans. Maize (corn), beans, rice, peanuts, cashews, pineapples, cassava, yams, and other various tubers are grown for local subsistence. Benin began producing a modest quantity of offshore oil in October 1982. Production ceased in recent years but exploration of new sites is ongoing.
The economy of Botswana is currently one of the world's fastest growing economies, averaging about 5% per annum over the past decade. Growth in private sector employment averaged about 10% per annum during the first 30 years of the country's independence. After a period of stagnation at the turn of the 21st century, Botswana's economy registered strong levels of growth, with GDP growth exceeding 6–7% targets. Botswana has been praised by the African Development Bank for sustaining one of the world's longest economic booms. Economic growth since the late 1960s has been on par with some of Asia's largest economies. The government has consistently maintained budget surpluses and has extensive foreign-exchange reserves.
The economy of Burkina Faso is based primarily on subsistence farming and livestock raising. Burkina Faso has an average income purchasing-power-parity per capita of $1,900 and nominal per capita of $790 in 2014. More than 80% of the population relies on subsistence agriculture, with only a small fraction directly involved in industry and services. Highly variable rainfall, poor soils, lack of adequate communications and other infrastructure, a low literacy rate, and a stagnant economy are all longstanding problems of this landlocked country. The export economy also remained subject to fluctuations in world prices.
The economy of Burundi is $3.436 billion by gross domestic product as of 2018, being heavily dependent on agriculture, which accounts for 32.9% of gross domestic product as of 2008. Burundi itself is a landlocked country lacking resources, and with almost nonexistent industrialization. Agriculture supports more than 70% of the labor force, the majority of whom are subsistence farmers.
The economy of Chad suffers from the landlocked country's geographic remoteness, drought, lack of infrastructure, and political turmoil. About 85% of the population depends on agriculture, including livestock herding. Of Africa's Francophone countries, Chad benefited least from the 50% devaluation of their currencies in January 1994. Financial aid from the World Bank, the African Development Bank, and other sources is directed mainly at improving agriculture, especially livestock production. Because of a lack of financing, the development of oil fields near Doba, originally due to finish in 2000, was delayed until 2003. It was finally developed and is now operated by ExxonMobil. Regarding gross domestic product, Chad ranks 147th globally with $11.051 billion as of 2018.
The economy of Cameroon was one of the most prosperous in Africa for a quarter of a century after independence. The drop in commodity prices for its principal exports – petroleum, cocoa, coffee, and cotton – in the mid-1980s, combined with an overvalued currency and economic mismanagement, led to a decade-long recession. Real per capita GDP fell by more than 60% from 1986 to 1994. The current account and fiscal deficits widened, and foreign debt grew. Yet because of its oil reserves and favorable agricultural conditions, Cameroon still has one of the best-endowed primary commodity economies in sub-Saharan Africa.
The economy of the Democratic Republic of the Congo has declined drastically around the 1980s, despite being home to vast potential in natural resources and mineral wealth; their gross domestic product is $69.474 billion as of 2023. During the last five reported years the exports of Democratic Republic of the Congo have changed by $15.2B from $13.3B in 2017 to $28.5B in 2022. The Economy of DRC is largely underestimated because the majority of Gold/Cobalt is sold on Black Market or Smuggled.
The economy of Ethiopia is a mixed and transition economy with a large public sector. The government of Ethiopia is in the process of privatizing many of the state-owned businesses and moving toward a market economy. The banking, telecommunication and transportation sectors of the economy are dominated by government-owned companies.
The economy of Laos is a lower-middle income developing economy. Being a socialist state, the Lao economic model resembles the Chinese socialist market and/or Vietnamese socialist-oriented market economies by combining high degrees of state ownership with openness to foreign direct investment and private ownership in a predominantly market-based framework.
The economy of Malawi is $7.522 billion by gross domestic product as of 2019, and is predominantly agricultural, with about 80% of the population living in rural areas. The landlocked country in south central Africa ranks among the world's least developed countries and poorest countries. Approximately 50% of the population lives below the national poverty line, with 25% living in extreme poverty.
The gross domestic product (GDP) of Niger was $16.617 billion US dollars in 2023, according to official data from the World Bank. This data is based largely on internal markets, subsistence agriculture, and the export of raw commodities: foodstuffs to neighbors and raw minerals to world markets. Niger, a landlocked West African nation that straddles the Sahel, has consistently been ranked on the bottom of the Human Development Index, at 0.394 as of 2019. It has a very low per capita income, and ranks among the least developed and most heavily indebted countries in the world, despite having large raw commodities and a relatively stable government and society not currently affected by civil war or terrorism. Economic activity centers on subsistence agriculture, animal husbandry, re-export trade, and export of uranium.
The economy of Rwanda has undergone rapid industrialisation due to a successful governmental policy. It has a mixed economy. Since the early-2000s, Rwanda has witnessed an economic boom, which improved the living standards of many Rwandans. The President of Rwanda, Paul Kagame, has noted his ambition to make Rwanda the "Singapore of Africa". The industrial sector is growing, contributing 16% of GDP in 2012.
The economy of Sudan is largely based on agriculture and oil exports, with additional revenue coming from mining and manufacturing. GDP growth registered more than 10% per year in 2006 and 2007. Sudan had $30.873 billion by gross domestic product as of 2019, and has been working with the International Monetary Fund (IMF) to implement macroeconomic reforms, including a managed float of the exchange rate. Sudan began exporting crude oil in the last quarter of 1999.
The economy of Tanzania is a lower-middle income economy that is centered around Manufacturing, Tourism, Agriculture, and financial services. Tanzania's economy has been transitioning from a planned economy to a market economy since 1985. Although total GDP has increased since these reforms began, GDP per capita dropped sharply at first, and only exceeded the pre-transition figure in around 2007.
The economy of Togo has struggled greatly. The International Monetary Fund (IMF) ranks it as the tenth poorest country in the world, with development undercut by political instability, lowered commodity prices, and external debts. While industry and services play a role, the economy is dependent on subsistence agriculture, with industrialization and regional banking suffering major setbacks.
The economy of Guyana is one of the fastest growing economies in the world with a gross domestic product (GDP) growth of 19.9% in 2021. In 2024, Guyana had a per capita gross domestic product of Int$80,137 and an average GDP growth of 4.2% over the previous decade. Guyana's economy was transformed in 2015 with the discovery of an offshore oil field in the country's waters about 190 km from Georgetown, making the first commercial-grade crude oil draw in December 2019, sending it abroad for refining.
The economy of Uganda has great potential and appears poised for rapid growth and development. Uganda is endowed with significant natural resources, including ample fertile land, regular rainfall, and mineral deposits.
The economy of the Gambia is heavily reliant on agriculture. The Gambia has no significant mineral or other natural resources, and has a limited agricultural base. About 75% of the population depends on crops and livestock for its livelihood. Small-scale manufacturing activity features the processing of peanuts, fish, and animal hides.
The economy of Ivory Coast is stable and currently growing, in the aftermath of political instability in recent decades. The Ivory Coast's economy is largely market-based and depends heavily on the agricultural sector. Almost 70% of the Ivorian people are engaged in some form of agricultural activity. The economy grew 82% in the 1960s, reaching a peak growth of 360% in the 1970s, but this proved unsustainable and it shrank by 28% in the 1980s and a further 22% in the 1990s. This decline, coupled with high population growth, resulted in a steady fall in living standards. The gross national product per capita, now rising again, was about US$727 in 1996. It was substantially higher two decades before. Real GDP growth is expected to average 6.5% in 2024–25.