Democratic Republic of Congo Economic Outlook
- Growth was affected by inflationary tensions and a highly charged political climate but remains significant for the period 2010/13.
- Improvement in governance should in the long run have a positive effect on people’s living standards.
- More than 70% of the young are underemployed, in particular in urban areas.
Growth should remain above 5% in 2012 and 2013, driven by agriculture, the extractive industries, trade and construction. The macroeconomic policy conducted in 2011 sought to limit net credit to the state to contain inflationary pressures and preserve the value of the currency. Furthermore, the country benefited in 2011 from the cancellation of its outstanding debt. Even so, the budgetary balance deteriorated in 2011 because of a poor mobilisation of revenues and the financing of the electoral process. The government adopted planning instruments and budgetary planning in the provinces to improve governance. It also abolished some redundant taxes and illegal levies to improve the business climate.
But the social situation remains fragile, in particular as a result of major food shortages among the population and problems in access to drinking water and sanitation.
Progress towards achieving the Millennium Development Goals (MDGs) remains very slow. Poverty affects 70.5% of the population and the country has no social protection policies or measures in place to help the young find jobs. Even young university graduates face enormous problems in entering the labour market: of the 9 000 young people leaving university each year fewer than 100 find work.
Nevertheless the second poverty reduction strategy paper (PRSP 2) covering the period 201216 envisages the creation of 900 000 jobs a year for young people, a target that is ambitious but, however, very hard to attain.
