The economic context of Congo

Economic Indicators

Heavily reliant on oil revenues, the Republic of Congo's real GDP contracted by an average of 1.9% per year from 2015 to 2023, resulting in a cumulative 32% decline in income per capita (World Bank). The economic downturn began with the fall in oil prices between 2014 and 2016, further worsened by cuts in public spending and the accumulation of domestic arrears, which ultimately led to a reduction in private investment. The COVID-19 pandemic prolonged the recession, bringing GDP per capita down to levels not seen since the early 1970s. After growing 2% in 2023, economic activity expanded an estimated 2.6% last year as non-hydrocarbon sector growth (3.1%) outpaced that of the hydrocarbon sector (0.8%). Strong private consumption and investment drove activity in forestry, manufacturing, and telecommunications, supporting overall non-hydrocarbon growth. However, ongoing operational challenges continue to affect oil production in the hydrocarbon sector (IMF).

The fiscal surplus decreased to 2.8% of GDP in 2024 and is expected to decline further to 1.9% in 2025-2026, primarily due to a projected drop in oil prices. Increased social spending and capital expenditure are likely to negatively affect the budget surplus; however, new investments in oil equipment and fields could boost production and help maintain the fiscal surplus. Congo's debt-to-GDP ratio remains high (at around 93.3% in 2024, from 99% one year earlier), posing fiscal risks, but is projected to decline to 86.6% in 2025-2026, thanks to recent reforms (IMF). In October 2024, the government exchanged 53% of its outstanding domestic bonds, representing 25% of domestic debt, extending maturities while keeping coupons and principals unchanged. Fitch classified this exchange as a distressed debt exchange (DDE) aimed at avoiding a traditional payment default. Inflationary pressures persisted in 2024, reaching an estimated 3.8% (down from 4.3% in 2023). The World Bank forecasts inflation to return within the BEAC target of 3% by 2025. Overall, to achieve resilient, sustainable, and inclusive growth, Congo needs to accelerate structural reforms and diversify its economy. This involves shifting away from reliance on hydrocarbons toward broader-based sectors like agribusiness, manufacturing, and tourism while fostering fair competition, improving governance, and reducing bureaucratic barriers to support a more business-friendly environment and create jobs (IMF).

Extreme poverty rose from 33.5% in 2015 to 46.6% in 2022, erasing earlier gains in poverty reduction. According to World Bank estimates, the poverty rate edged up slightly to 46.8% in 2024 but is projected to decline to an average of 46.0% in 2025–2026. The unemployment rate was estimated at around 19.9% in 2023, with the informal sector playing a prominent role, engaging about 80% of urban workers. Lastly, the country’s GDP per capita is very low, estimated at USD 6,403 in 2024 by the IMF (PPP).

Main Sectors of Industry

In Congo, agriculture contributes 9% of GDP and employs 30.2% of the active population (World Bank, latest data available), with the majority engaged in subsistence farming. Despite having fertile land, only a small portion is cultivated, less than 10%. The country’s territory is mostly covered by forests, accounting for 70% of its land area. However, the forestry sector’s contribution to GDP is less than 5%. Agriculture is mainly focused on subsistence farming, leading Congo to rely heavily on food imports, with 'food products and beverages' comprising over half of the country’s imports and about 80% of domestic food consumption. The main crops include cassava, plantains, bananas, peanuts, and palm oil.

The industrial sector contributes 45.2% of GDP and employs 23.2% of the workforce, driven by the petroleum, timber, and mining sectors. Congo is the leading oil producer in the CEMAC region, with an estimated annual production of at least 270,000 barrels per day in 2023. Oil accounts for around a quarter of GDP, two-thirds of budgetary revenues, and over 80% of export revenues, making Congo highly vulnerable to fluctuations in commodity prices. Foreign companies dominate the oil sector, with TotalEnergies being the largest contributor to the country's total annual oil production. Congo possesses significant hydrocarbon reserves, with an estimated 1.8 billion barrels of oil and 284 billion cubic meters of natural gas (OPEC). The manufacturing sector accounts for an estimated 13% of GDP (World Bank) and is limited to sugar production, breweries, flour mills, primary wood processing, and cement production.

The industrial sector contributes 45.2% of GDP and employs 23.2% of the workforce, driven by the petroleum, timber, and mining sectors. Congo is the leading oil producer in the CEMAC region, with an estimated annual production of at least 270,000 barrels per day in 2023. Oil accounts for around a quarter of GDP, two-thirds of budgetary revenues, and over 80% of export revenues making Congo highly vulnerable to fluctuations in commodity prices. Foreign companies dominate the oil sector, with TotalEnergies being the largest contributor to the country's total annual oil production. Congo possesses significant hydrocarbon reserves, with an estimated 1.8 billion barrels of oil and 284 billion cubic meters of natural gas (OPEC). The manufacturing sector accounts for an estimated 13% of GDP (World Bank).

 

Breakdown of Economic Activity By Sector	Agriculture	Industry	Services
Employment By Sector (in % of Total Employment)	30.2	23.2	46.7
Value Added (in % of GDP)	9.0	45.2	40.4
Value Added (Annual % Change)	2.8	0.7	3.4

Source: World Bank, Latest Available Data. Because of rounding, the sum of the percentages may be smaller/greater than 100%.

 

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Indicator of Economic Freedom

Definition

Definition:

The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.}}

Score:

50,7/100

World Rank:

156

Regional Rank:

37

Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation

 

 

Sources of General Economic Information

Ministries

Ministry of Finances and Budget
Ministry of Hydrocarbons

Statistical Office

National Institute for Statistics

Central Bank

Bank of Central African States

Stock Exchange

The ROC does not have a stock exchange. ROC-based companies may be listed on the CEMAC Zone Stock Exchange (BVMAC).

Economic Portals

Fortune of Africa Congo
Les Echoes
Journal de Brazza
France24