IMF completes mission to Central African Republic

An International Monetary Fund (IMF) team has completed its mission to the Central African Republic following the approval in July of an amount equivalent to 83.55 million worth of Special Drawing Rights that had been approved by the IMF board.

The mission noted the country’s economic program is broadly on track, though there has been deterioration in the security environment, despite the ongoing dialogue with armed groups, and which has taken a toll on economic activity.

According to the bretton woods institution, CAR’s Gross Domestic Product is expected to grow at 4.5 percent and 5.0 percent in 2016 and 2017, respectively, slightly below initial projections of 5.2 percent and 5.5 percent, made in July 2016.

Prices of key staple goods have however increased, with average annual inflation now projected at 5.1 percent, against an earlier projection of 4.0 percent.

IMF welcomed the authorities’ efforts to clear wage and pension arrears and contain the public wage bill.

“The mission welcomes the authorities’ efforts to accelerate the preparation of the new Recovery and Peace Consolidation Plan (RPCP), which will underpin the government’s medium-term strategy and the 2017 budget,” the mission said in a statement.