Chad: 2008 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Chad
IMF Staff Country Reports, February 20, 2009
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- Chad: 2008 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Chad
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Bibliographic details
- Published: February 20, 2009
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451836509.002
Summary
- The staff report presents economic developments and policies for Chad’s 2008 Article IV Consultation.
- The global economic crisis has affected Chad’s budget and reserves through lower oil prices.
- Chad’s limited financial and trade integration has insulated it from the financial crisis and ensuing global recession.
- Chad is seriously affected by declining oil prices, which will require substantial fiscal adjustment and will lower reserves, albeit not to critical levels.
Key economic impacts and findings
- Lower oil prices have reduced budgetary revenues and reserves.
- Limited financial and trade integration reduced direct exposure to the global financial crisis and global recession.
- The fiscal position faces notable strain due to oil revenue declines.
Risks identified
- Lower demand for exports could further weaken external performance.
- Weaknesses in the foreign banks that own most of Chad’s banking system pose financial sector risks.
Policy implications and recommendations
- Substantial fiscal adjustment is required to respond to declining oil prices.
- Policies should aim to manage reserve reductions to avoid critical levels while addressing budgetary shortfalls.
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