Comoros Economic Outlook

In 2012/13 exports of agricultural products, together with infrastructure developments, should contribute to a modest increase in growth.
Reaching completion point in the Heavily Indebted Poor Countries initiative will make possible the cancellation of multilateral debt.
Unemployment affects 14.3 % of the active population and particularly the young (44.5%).

Growth should accelerate slightly in 2012 in spite of unfavourable economic conditions in France, which is home to most Comorian expatriates. This growth should derive from the completion of several major infrastructure projects in the fields of transport, tourism and energy. However, this increase in activity in 2012 and 2013 could have a negative effect on import prices and the trade deficit. In 2012 the Comoros will face a major challenge in reaching completion point of the Heavily Indebted Poor Countries (HIPC) initiative. If this is achieved the way would be opened to a major reduction in the debt stock in the framework of the Multilateral Debt Relief Initiative (MDRI), reducing the debt/export ratio from 349% in 2011 to a sustainable level of 150%.

Young people face a high level of unemployment which affects about 45% of the working age population, or one young person in two. This unemployment is basically structural and affects both qualified and unqualified young people. It is the consequenceof inadequate economic growth and the many constraints faced by enterprises: high energy costs, the poor state of infrastructure, high taxes, and heavy financial charges. On the supply side young Comorians are insufficiently trained to meet the needs of the labour market The public sector is, for the time being, the chief provider of jobs in the Comoros.