Central African Republic Economic Outlook
- Growth should improve in 2012, driven by the agricultural sector and the recovery of investment in the mining sector.
- Improvement in the public finances should make possible the return of foreign aid.
- The high rate of youth unemployment is made worse by the absence of any specific policy in favour of jobs.
The economic outlook for 2012 is favourable in the light of the resumption of investment in the mining and oil sectors and of outside investment in the area of infrastructure. Inflation should rise because of a recovery in internal demand but should stay at a level beneath the convergence criteria of the Central African monetary and economic community (CEMAC). The recovery in public finances carried out in 2011 and continued in 2012 should make possible the agreement of a new economic and financial programme with the International Monetary Fund (IMF) during 2012, and lead to the lifting of the suspension of several external budgetary supports. These prospects, however, remain dependent on better security, peace, and the strengthening of the political dialogue through the disarmament, demobilisation and reintegration (DDR) programme.
Youth unemployment reflects the social, political and economic problems that the country has been facing for several decades. The high rate of joblessness among the young and the absence of real job opportunities are made worse by the country’s demography, where young people predominate among the active population. There are no specific policies directed at fostering employment and professional training. The government aims to establish by 2015 an institutional and regulatory framework to encourage the creation of jobs, strengthen the bodies responsible for executing employment policy and professional training, and to set up an information and management system for the labour market. The country also needs to improve its business climate and diversify itsproductive sector if it is to create new recruitment possibilities.
