IMF Staff Country Reports

This paper presents Republic of Congo’s First Review under the Three-Year Extended Credit Facility (ECF) Arrangement, Requests for Modification of Performance Criteria, and Financing Assurances Review. Economic recovery is gaining momentum but remains fragile against the backdrop of the coronavirus disease 2019 pandemic and global consequences of the war in Ukraine. More vigorous economic activity is being held back by rising inflation, as global food and oil prices surge. Maintaining momentum in structural reforms and improving governance and transparency will be critical to attaining higher, more resilient, and inclusive growth. Key among these are reforms in public financial management, anti-corruption measures, and energy sector reforms. Fiscal policy will need to maintain the delicate balance between supporting a robust economic recovery while safeguarding debt sustainability. Part of the oil revenue windfalls should finance increased social assistance and tax deferrals initiated during the pandemic to help vulnerable businesses and households cope with high inflation. Policies under this ECF-supported program will continue to help reduce fragilities and place the Republic of Congo onto a path of higher, more resilient, and inclusive growth. It will also contribute to the regional effort to preserve external stability for the Central African Economic and Monetary Union.