Chad

Economic activity in Chad continued to be hurt by the decline in world oil prices in mid-August 2014 and the security and humanitarian crises facing the country. GDP growth fell from 6.2% in 2014 to 1.8% in 2015  to –6.4%  in 2016 and was estimated to turn positive in 2017. Inflation, –1.9% in 2016, increased in 2017 and is projected to do so in 2018 as well. Declining investment, particularly in oil and in building and public works, large workforce cuts, high domestic arrears, and the sharp decline in public spending largely explain the contraction over the past two years. The outlook for 2017 and 2018 depends heavily on the country’s ability to intensify fiscal consolidation in an economic and financial environment characterized by falling oil prices.