The recent peace agreement in the Central African Republic is a unique opportunity to improve the country’s security and create the conditions for sustained and inclusive growth, poverty reduction, and job creation, according to the International Monetary Fund in a statement on Friday.
The IMF said its recent team to the country held fruitful talk with the authorities in CAR on economic and financial policies that could support the completion of the sixth and final program review of CAR’s macroeconomic performance which remains favorable with increasing economic growth and contained inflation.
The IMF team, led by Mr. Édouard Martin, visited Bangui from April 24 through May 3, 2019 to conduct discussions for the sixth and final review of the Central African Republic’s economic reform program supported by an Extended Credit Facility (ECF).
The team met with President Faustin Touadéra and other senior government officials before meeting parliamentarians and representatives of the business and donor communities.
At the end of the visit, Mr. Martin issued a statement saying February’s peace accord has created the conditions for sustained and inclusive growth for the national economy.
“CAR’s macroeconomic performance remains favorable…estimated at around 4 percent in 2018 and is projected to reach 4½ percent in 2019. Inflation was subdued at 1.6 percent in 2018 and is expected to remain contained. The current account deficit (excluding grants) would decline from about 12 percent in 2018 to around 11 percent in 2019″ Martin said.
According to the him, the banking sector remains well capitalized and liquid, with the share of non-performing loans decreasing significantly thanks to the repayment of commercial arrears by the government.
“Risks to the outlook remain significant, relating on the downside to the volatile security environment and rising oil prices and on the upside to the implementation of the peace agreement” he added.
PR/as/APA