Economic Outline

Economic Indicators

The Democratic Republic of Congo (DRC), the largest country in sub-Saharan Africa, is rich in natural resources, including cobalt, copper, hydroelectric potential, vast arable land, diverse wildlife, and the world’s second-largest rainforest. Armed groups have turned mineral-rich regions into conflict zones, fueling an illicit economy and costing the government an estimated USD 900 million in lost revenue after losing control of North and South Kivu. The unrest affects 14% of the population, with severe human rights abuses and over 400,000 new IDPs in January 2025, adding to the 4.6 million already displaced in the Kivu area. The conflict worsens poverty and weakens basic services. According to the World Bank, the DRC’s economy grew by 6.5% in 2024, down from 8.6% in 2023, driven by a 12.8% rise in the extractive sector. Copper and cobalt output increased by 12.1% and 30.1%, mainly due to the Kamoa-Kakula project. Non-mining sectors grew by 3.2%, supported by construction and services. Growth is projected to slow to 5.1% in 2025–27 as mining expansion eases, with non-mining sectors expected to pick up, reaching 5.9% by 2027.

Despite higher mining revenue and tax collection, rising security and wage costs widened the fiscal deficit to 2.0% of GDP in 2024, up from 1.7% in 2023. Spending rose slightly to 16.8% of GDP, with military outlays stable at 2.0% and capital spending increasing to 3.9%. Domestic revenue grew to 14.4% of GDP, helping offset spending, while the rest was financed through domestic and concessional external borrowing. Public debt remained low at 22.1% of GDP, with a moderate risk of distress. High public-sector wages and security costs are expected to push the fiscal deficit to 3.8% of GDP in 2025, before narrowing to 1.9% by 2027 through spending controls and improved tax collection. Defence spending may exceed 2.5% of GDP in 2025, potentially limiting funds for social services and poverty reduction. Meanwhile, the Congolese franc (CDF) depreciated by 8.7% in 2024, while inflation eased to 11.3% as the central bank tightened monetary policy, raising its key rate from 8.25% to 25% over three years. A strong external position and no central bank financing of the deficit is expected to stabilise the currency and bring inflation toward the 7% medium-term target (data from the World Bank).

The DRC is one of the poorest countries in the world, with around 72.9% of the population living in poverty (World Bank, 2024). It is among the lowest-ranked in the human development index and violence is frequent, especially in the east of the country. According to the latest data from the World Bank, in 2024, the unemployment rate in the country stood at 4.5% - a slight decrease from the previous year, when that rate was 4.6%. However, among the employed share of the population, a high percentage of workers have informal jobs. Lastly, the country’s GDP per capita was estimated at USD 1,810 in 2024 by the IMF, one of the lowest in the world.

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