Central African Republic WT/TPR/S/183/Rev.1 
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I. ECONOMIC ENVIRONMENT 
(1) MAIN FEATURES OF THE ECONOMY1 
1. The Central African Republic is a vast land-lo cked country at the heart of the African 
continent, with a land area of 623,000 km2.  It shares borders with Cameroon to the west, the 
Democratic Republic of the Congo to the south, Suda n to the east and Chad to the north.  With the 
exception of Sudan and the Democratic Republic of the Congo, all of the Central African Republic's 
neighbours belong to the Central African Economic  and Monetary Community (CEMAC) and share 
the goal of establishing a customs union.  In 2005, the country's population was estimated at around 4 million people (Table I.1), most of whom were living in rural areas. 
Table I.1 
The Central African Republic in figures, 1998-2006 
  1998 1999 2000 2001 2002 2003 2004 2005a 2006a 
Population (millions) 3.7 3.7 3.8 3.8 3.9 3. 9 4.0 4.0 .. 
Total GDP (US$ million) 1,027.9 1,037.4 959.4 967.5 1,041.9 1,198.2 1,307.2 1,370.7 1,479.2 
Per capita GDP (US$) 281.6 279.6 253.8 251.9 267.8 304.1 327.6 339.3 .. 
Share of GDP at current prices (percentage) 
Agriculture (including fishing 
and livestock) 51.3 49.4 50.0 51.5 51.0 54.4 .. .. .. 
Livestock  10.7 10.4 10.4 10.8 11.1 11.9 .. .. .. 
Hunting and fishing 5.0 4.9 4.9 5.1 5.3 5.8 .. .. .. 
Forestry 7.1 7.2 9.1 8.1 7.4 6.8 .. .. .. 
Manufacturing 3.3 3.4 3.6 3.5 3.0 2.3 .. .. .. 
Mining and quarrying  6.4 6.6 6.6 6.5 6.6 6.6 .. .. .. 
Services 33.0 34.5 33.8 33.4 33.4 32.2 .. .. .. 
Tradable services 23.0 23.8 23.5 24.7 24.4 24.8 .. .. .. 
Transport and communications 3.6 3.8 3.7 3.8 3.8 3.8 .. .. .. 
Commerce 9.9 10.1 10.0 10.6 10.4 10.4 .. .. .. 
Construction 3.7 3.9 3.9 4.1 4.1 4.4 .. .. .. 
Other 5.8 6.0 5.9 6.2 6.1 6.2 .. .. .. 
Non-tradable services 10.0 10.7 10.3 8.7 9.0 7.4 .. .. .. 
Public administration 6.0 5.6 5.8 5.6 6.2 6.7 .. .. .. 
Technical assistance 4.1 5.1 4.5 3.1 2.7 0.6 .. .. .. 
GDP at factor cost 94.0 93.9 94.0 94.8 93.9 95.5 .. .. .. 
Indirect taxes 5.1 5.2 5.0 4.2 5.0 3.4 .. .. .. 
Customs duties 0.9 0.8 1.0 1.0 1.0 1.1 .. .. .. 
.. Not available. 
a Estimates. 
Source : IMF, Country Report No. 05/424, Country Report No. 04/167 and IMF, Central African Republ ic:  Request for a 
Three-Year Arrangement Under the Po verty Reduction and Growth Facility , 7 December 2006. 
2. The Central African political landscape was stabiliz ed by the holding of presidential elections 
in 2005.  Like other countries that have endured a long period of conflict2, the Central African 
Republic's productive structure has suffered major di sruption, private investment has dried up, and 
poverty has worsened, especially in rural areas.  All tradable sectors of the economy have suffered the 
harmful effects of the socio-political crisis, the afterm ath of which persists in the form of a relatively 
                                                      
1 IMF (2006b). 
2 World Bank (2005). WT/TPR/S/183/Rev.1 Trade Policy Review 
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depressed business climate (including investment and consumption), aggravated by financial 
constraints that burden government action (section (3)(ii)).  Per capita income was US$338 in 2005, 
and, according to the United Nations Developm ent Programme (UNDP), the country ranked 172nd 
(out of 177) in terms of the Human Development Index in 2004.3  According to the authorities, 
average life expectancy in 2005 was 43 years, an d 49 per cent of the adult population was literate.  
Since mid-2004, the Central African Republic has benefited from IMF support for its post-conflict 
programme, as well as support fro m its development partners. 
3. The Central African economy is based mainly on the agriculture sector (including subsistence 
farming, livestock breeding, hunting, fishing, and forestry), which provides employment for about 
75 per cent of the population and produces 50 per cen t of GDP.  Subsistence farming alone generates 
about one third of the country's GDP, according to offi cial estimates, while diamonds are the country's 
leading export product, followed by wood (Chart  I.1).  Nonetheless, mining and quarrying only 
account for around 7 per cent of GDP, and the share of manufacturing is barely 3 per cent.  Apart 
from the long period of strife that the country has lived through, this small share is the result of numerous supply constraints, such as the higher costs that arise from the country's land-locked 
situation, further compounded by the dilapidated stat e of transport infrastructure, the non-availability 
of inputs such as electricity, and a financial syst em that mainly focuses on short-term credits.  
Services, especially trade, transport and communications, account for some 32 per cent of GDP. 
4. The Central African Republic is a member of the Central African Monetary Union (UMAC), 
whose institutional framework has been incorporated in the CEMA C (Chapter II(3)(ii)(c)).  UMAC 
members have common monetary and exchange policies administered by the Bank of Central African 
States (BEAC), which is a UMAC institution.
4  The monetary unit, the CF A franc (Franc of Financial 
Cooperation in Central Africa) is anchored to th e euro at a fixed parity:  CFAF 1,000 = €1,524.5 
5. The Central African Republic accepted Article V III of the IMF's Articles of Agreement on 
1 June 1996.6  The major common exchange restricti on imposed by CEMAC member countries 
concerns the outflow of capital to non-member count ries, which is subject to administrative controls 
(backed up by substantiating documents) by the Ministry of Finance and the BEAC.7  Export 
transactions must be declared to the Ministry  of Finance and transactions involving an amount 
exceeding CFAF 5 million must be domiciled with a bank approved by the CEMAC.  Export earnings must be repatriated within 30 days following the conclusion of the transaction and surrendered to the 
Central Bank. 
 
                                                     
 
3 UNDP (2006). 
4 Monetary cooperation between UMAC member countr ies and France dates back to the colonial era.  
It was formalized in 1959 and a new treaty was signed in 1973.  The BEAC is the result of the monetary 
cooperation agreement signed with France on 22 November  1972, supplemented by the transactions account 
convention of 1973. 
5 The CFA franc was anchored to the French franc at a fixed parity (adjusted in 1994) until 
1 January 1999, when the euro was introduced;  but this did not entail any substantive change as regards the 
arrangements in the franc zone (EU Council Decision of 23 November 1998 on exchange rate matters relating to 
the CFA franc and the Como rian franc (98/683/EC)). 
6 IMF (2006a). 
7 In accordance with Regulation No. 02/00/CEMAC/ UMAC/CM, payments relating to international 
transactions can be made freely and capital movement s are free with some exceptio ns which are subject to 
administrative controls (certain types of borrowing, certain loans, certain transactions relating to foreign 
movable assets exceeding CFAF 10 milli on).  The import and export of gold and precious stones  are subject to 
special regulations:  such transactions within the CEMAC are free, but those outside the CEMAC require 
authorization by the competent authorities. Central African Republic WT/TPR/S/183/Rev.1 
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0%10%20%30%40%50%60%70%80%90%100%
1995 2000 2001 2002 2003 2004 2005
0%10%20%30%40%50%60%70%80%90%100%
1995 2000 2001 2002 2003 2004 2005Chart I.1
Structure of merchandise trade, 1995-2005
(a) Exports, including re-exports (f.o.b.)
(b) Imports (c.i.f.)
Source: WTO Secretariat calculations, based on Comtrade data, mirror statistics, UNSD (SITC, Rev.3).Transport equipmentOther semi -manufactures
Non-electrical machineryFuelsWood of non-coniferous species, sawn, > 6mm Coffee, roastedWood of non-coniferous species, in the rough Diamonds, other than industrial
Other
Office machines Other primary productsFood products Other electrical machinery § Chemical products
OtherCotton , not carded or combed
 WT/TPR/S/183/Rev.1 Trade Policy Review 
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(2) RECENT ECONOMIC TRENDS8 
6. The Central African Republic experienced real  economic growth on the order of 0.6 per cent 
per year in the period 1998-2005 (Table I.2).  As population grew faster than this during the period (by about 1.3 per cent), poverty worsened.
9  More specifically, the Central African economy grew by 
about 1.8 per cent per year in real terms between 1998 and 2002, before contracting by 7.6 per cent in 
2003 (following the March 2003 coup d'état ) and then resuming a tentative expansionary path.  The 
economic growth rate strengthened to 3.7 per cent in 2006. 
Table I.2 
Main economic indicators, 1998-2006 
 1998 1999 2000 2001 2002 2003 2004 2005a 2006a 
Real GDP at market prices (annual 
variation) 3.9 3.6 1.8 0.3 -0.6 -7.6 1.3 2.2 3.7 
National accounts (% of GDP)           
Resources           
Imports of goods and non-factor 
services 27.6 23.1 24.3 21.0 19.9 16.6 18.9 18.8 .. 
Use           
Final consumption 96.2 92.9 95.3 96.1 95.4 99.5 99.6 99.5 .. 
Public consumption 14.2 14.9 14.0 11.9 12.9 10.4 8.3 7.9 .. 
Household consumption 82.0 77.9 81.3 84.2 41.1 89.1 91.3 91.6 .. 
Gross fixed capital formation 11.1 11.7 9.5 8.4 9.0 6.0 6.3 7.0 .. 
Change in inventories 0.0 0.0 0.0 0.0 0.0 0.0 0.1 -0.1 .. 
Exports of goods and non-factor 
services 20.3 18.5 19.4 16.5 15.5 11.1 13.0 12.4 .. 
Real GDP (annual trend in 
percentage) 3.9 3.6 1.8 0.3 -0.6 -7.6 1.3 2.2 3.5 
Price index (annual average, 2000=100) 
Consumer prices 98.3 96.9 100.0 103.8 106.3 110.7 108.4 111.5 .. 
External sector (CFAF billion) 
Trade balance 2.7 10.4 26.6 25.6 14.3 2.2 -7.5 -12.1 -12.9 
Exports f.o.b. 89.1 91.1 110.9 104.1 101.3 70.9 66.0 67.6 75.3 
Imports f.o.b. -86.3 -80.8 -84.3 -78.5 -86.9 -68.7 -73.6 -79.8 -88.3 
Current account -36.5 -10.7 -20.7 -17.8 -22.7 -33.9 -30.5 -20.5 -25.3 
as a percentage of GDP -6.0 -1.7 -3.0 -2.5 -3.1 -4.9 -4.4 -2.8 -3.3 
Capital and financial transactions 
account -1.1 -6.6 -14.4 5.1 -16.6 -3.7 10.9 12.6 -15.7 
Overall balance -31.5 -11.5 -12.8 -27.7 -36.3 -32.4 -19.5 -7.9 -40.9 
Real effective exchange rate 
(index, 2000=100)b 102.2 100.3 100.0 107.1 116.1 123.3 122.2 122.3 .. 
Financial transactions by the State (CFAF billion) 
Revenue 109.4 113.0 93.3 87.5 105.9 63.8 78.5 88.0 100.0 
Tax 50.3 53.5 53.4 51.8 61.4 45.3 48.3 50.6 59.5 
Non-tax 6.1 6.2 7.1 11.4 17.0 8.4 7.5 8.0 9.6 
Grants 53.1 53.3 32.8 24.3 27.5 10.1 22.7 29.5 30.9 
Expenditure -109.5 -116.1 -105.7 -93.6 -114.6 -85.5 -93.4 -120.4 -100.3 
Current (primary) -41.9 -45.4 -51.6 -51.0 -57.3 -58.1 -66.7 -75.4 -61.0 
Interest payments -8.3 -9.1 -11.5 -9.8 -11.3 -7.9 -8.5 -6.6 -15.5 
Capital expenditure -59.3 -61.6 -42.6 -32.8 -46.0 -19.5 -18.2 -38.4 -23.8 
Overall balance (commitments basis)           
Excluding grants -53.1 -56.3 -45.2 -30.5 -36.2 -31.8 -37.7 -61.8 -31.1 
Including grants 0.0 -3.0 -12.4 -6.2 -8.6 -21.8 -15.0 -32.4 -0.3 
Table I.2 (cont'd)
                                                      
8 IMF (2006b) and BEAC (2006). 
9 A UNDP study of monetary poverty among urban and rural households in 2003 found that roughly 
60 per cent of the Central African population was living on less than US$1 a day (UNDP, 2004). Central African Republic WT/TPR/S/183/Rev.1 
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 1998 1999 2000 2001 2002 2003 2004 2005a 2006a 
Variation in arrears (net; reduction (-)) -70.1 -3.0 -2.9 -7.3 21.3 30.5 21.1 26.9 -6.0 
Overall balance (transactions basis) -70.1 -6.0 -15.3 -13.4 12.7 8.7 6.1 -5.5 -6.3 
Financing needs 70.1 6.0 15.3 13.4 -12.6 -8.7 -6.1 5.5 -7.3 
External, net 66.6 2.7 6.5 2.2 -13.0 -11.4 -14.6 -4.5 7.2 
Domestic, net 3.5 3.3 8.8 11.2 0.4 2.7 8.5 10.0 -14.5 
Residual financing 0.0 0.0 0. 0 0.0 0.0 0.0 0.0 0.0 13.6 
Monetary situation (annual trend in percentages) 
Money supply (M2) -16.1 11.1 2.4 -1.1 -4.1 -8.3 14.2 16.5 3.1 
.. Not available. 
a Provisional figures. 
b An increase in the index indicates an appreciation. 
Source : IMF, Country Report N°05/424, C ountry Report No. 04/167 and IMF, Central African Republic:  Request for a 
Three-Year Arrangement Under the Po verty Reduction and Growth Facility , 7 December 2006;  BEAC on line at:  
http://www.beac.int/index.html. 
7. The upturn in 2006 is mainly due, on the supply side, to expansion in the diamonds subsector, 
vigorous growth of forestry production, and th e recovery of agribusiness and tradable services 
(particularly transport and telecommunications).  The Government also provided financial support for 
the revival of cotton growing (Chapter IV(2)(iii)(b)).   On the demand side, the more regular payment 
of civil servants' wages has sustained household co nsumption, and both private and public investment 
have recovered since 2005.  Nonetheless, the scope of  the recovery is being restricted by persistent 
insecurity in certain parts of the country, low levels of investme nt and external assistance, high 
production costs aggravated by the aftermath of the crisis that plagued the country from 1996 
onwards, and the exorbitant prices of petroleum products. 
8. Since July 2004, with support from the inte rnational community, the Central African 
Republic has been implementing a macroeconomic st abilization and structural reform programme to 
lift its economy out of the slump into which it ha d been plunged after several years of military-
political crisis.  Since December 2006 this progr amme has been supported by an IMF Poverty 
Reduction and Growth Facility (PRGF).10  The objectives of the programme include reducing the 
overall budget deficit (on a commitments basis, excluding grants), through increased efforts to restore revenue levels (particularly at the customs co rdon), and tighter control over current primary 
expenditure.  Since 2003, tax revenues (excluding gran ts) no longer cover the latter.  In 2006, grants 
accounted for around one third of all budgetary receipt s (Table I.2).  Moreover, the Central African 
Republic is not fully servicing its external public debt (in agreement with creditors) during this 
reconstruction phase.  At 31 December 2006, the stock of external public debt stood at CFAF 616 
billion (about 78 per cent of nominal GDP in 2006 ), which, according to the IMF and the World 
Bank, is unsustainable.
11  The authorities expect to finalize their Poverty Reduction and Strategy 
Paper (PRSP) during 2007.  They also expect the Ce ntral African Republic to be able to attain the 
decision point of the enhanced Heavily Indebted Poor Countries (HIPC) initiative at some point 
during the year. 
9. The BEAC formulates the monetary policy of its members, including the Central African 
Republic.  Monetary programming (particularly relating to lending to the economy and the money 
supply (M2)) is conducted on an annual basis taki ng into account the overall financing requirements 
of the economy concerned and the means availa ble, as set by each National Credit Council and 
National Monetary and Financial Committee.  The BEAC uses three indirect instruments for its 
interventions:  a policy of refinancing through th e money market (capped at CFAF 8 billion in the 
                                                      
10 "IMF Executive Board Approves US$54.5 Milli on PRGF Arrangement for the Central African 
Republic", IMF Press Release No. 06/299, 22 December 2006.  Consulted at:  www. imf.org [16 March 2007]. 
11 IMF (2007), "Debt Sustainability Analysis", Box 1, p. 11. WT/TPR/S/183/Rev.1 Trade Policy Review 
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case of the Central African Republic);  ceiling inter est rates for borrowing and floor rates for lending 
(15 per cent and 4.25 per cent respectively in Marc h 2007);  and required reserves (zero-rated in the 
Central African Republic since 2002).  Thanks to this  monetary policy, which is restrictive overall, 
inflation has been brought under control.  Nonethel ess, the deflationary trend seen in 2004 (-2.1 per 
cent) has been reversed since 2005 with price in creases (of about 2.9 per cent), particularly in food 
products, and the adjustment of domestic oil pri ces.  The rise in VAT from 18 to 19 per cent in 2006 
contributed about 5 per cent to inflation. 
10. The Central African Republic was unable to meet any of the CEMAC's four first-tier 
economic convergence criteria in 2006.12  These criteria, drawn up according to the framework for 
macroeconomic convergence adopted by the Community in 200013 have been subject to 
CEMAC surveillance since 2001, with the support of the Ministers of Finance and the Economy in the 
Franc Zone. 
(3) TRADE AND INVESTMENT PERFORMANCE  
11. The annual ratio of external trade to nomina l GDP for the Central African Republic was 30.6 
per cent in 2003-2005.  During this period, the country 's terms of trade have deteriorated.  The prices 
of imported petroleum products (on which the country is wholly dependent) have risen sharply, while 
those of its main export products (diamonds, wood, coffee, cotton) have declined.  Moreover, the 
export volumes of these products have fluctuated shar ply as a result of the socio-political situation, 
while the levels of the country's oil and food needs remained the same.  These factors help to explain 
why the country's traditional trade surplus turned progressively into a deficit between 1998 and 2005 
(Table I.3) – a trend that appears to persist in 2006 (according to estimates).  Furthermore, the 
traditional deficit on the services account has been aggr avated by an increase in  the cost of external 
transport (including freight), reflecting the fact th at the Central African Republic is a land-locked 
country at the heart of Africa.  
12. Diamonds and wood products are the leading expor t items (Chart I.1 and Table AI.1), while 
imports are much more diversified in product terms (Chart I.1 and Tabl e AI.2).  The main destinations 
for the Central African Republic's exports are Eu ropean countries, while its imports are sourced 
mainly from France, other European countries a nd China (Chart I.2 and Tables AI.3 and AI.4). 
13. The rate of gross fixed capital formation is very low, averaging around 9.3 per cent of 
GDP per year in the period 1998-2003, although there has been a slight increase since the country's 
political stabilization in 2003 (10.7 per cent of GDP in  2006).  While public investment is being held 
back by budgetary constraints, support from a numb er of the country's development partners has 
helped restore the state of the roads and other infr astructure to some extent.  Apart from the weakness 
of saving, private investment in the Central Afri can Republic has for long been discouraged by the 
military-political crisis that the country has liv ed through, and the persistence of a number of 
                                                      
12 The first-tier criteria are as follows:  the ratio of the basic budget balance to nominal GDP should be 
zero or more;  the annual average rate of inflati on should not exceed 3 per cent;  the ratio of outstanding 
domestic debt to nominal GDP should not exceed 70 per ce nt;  and there should be no accumulation of payment 
arrears on the domestic or external debt. 
13 The framework is composed of  the following:  Directive No. 01/00/UEAC-064-CM-04 on the 
establishment of multilateral surveillance of macroecono mic policies within CEMAC member States;  Decision 
No. 02/01-UEAC-090-CM-06 of 3 August 2001 on partic ipation by the Executive Secretariat in negotiations 
between member States and the Bretton Woods institu tions;  Decision No. 01/00/UEAC-064-CM-04 on fixing 
the timetable for introducing multilateral surveillance of macroeconomic policies within CEMAC member 
States;  Directive No. 01/01/UEAC-094-CM-06 of 3 August 2001 determining the criteria and macroeconomic indicators for multilateral surveillance. Central African Republic WT/TPR/S/183/Rev.1 
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problems of insecurity in certain regions of the country.  Private investment has recovered since 2005, 
however, particularly in mobile telephony (Chapter IV(5)(iii)), forestry (Chapter IV(2)(v)), and sugar 
production (Chapter IV(2)(iii)(c)). 
Table I.3 
Balance of payments, 1997-2006 
(US$ million) 
 1997 2000 2001 2002 2003 2004 2005a 2006ab 
Current accounts -29.1 -29.1 -24.3 -32.6 -58.3 -57.7 -38.9 -48.2 
Trade balance 16.4 37.4 34.9 20.5 3.8 -14.2 -22.9 -24.6 
Exports f.o.b. 157.1 155.8 142.0 145.3 122.0 124.9 128.2 143.3 
Diamonds 67.0 61.7 56.2 52.1 49.2 52.6 59.7 64.7 
Wood products 20.0 63.9 61.8 71.2 59.5 54.3 59.0 66.8 
Imports f.o.b. -140.7 -118.4 -107.1 -124.7 -118.2 -139.3 -151.3 -168.1 
Petroleum products -15.1 -9.0 -18.4 -15.8 -13.9 -32.2 -29.6 -45.9 
Public investment programme -24.3 -20.5 -6.0 -12.1 -8.8 -3.6 -9.5 -12.0 
Other -101.3 -88.9 -82.7 -96.8 -95.5 -103.5 -112.2 -110.2 
Trade in services, net -46.4 -83.7 -78.3 -73.0 -74.8 -72.3 -69.4 -70.1 
Credits 84.1 30.6 17.9 16.6 16.5 .. .. .. 
Debits -130.7 -114.3 -96.2 -89.7 -91.2 .. .. .. 
Revenue, net -16.4 -16.7 -10.2 -7.3 -6.0 -5.7 0.0 -1.1 
Credits 1.5 3.8 5.2 5.3 .. .. .. .. 
Debits -18.0 -20.5 -15.4 -12.6 .. .. .. .. 
Current transfers, net 17.3 34.1 29.2 27.1 18.8 34.5 53.3 47.6 
Capital transfers, net 20.0 23.5 17.9 19.5 11.9 35.0 29.2 43.2 
Projects 12.5 21.1 14.2 18.1 4.8 7.2 24.1 14.1 
Programmes 7.5 1.7 3.4 1.4 7.1 28.0 5.1 29.1 
Debt cancellation 0.0 0.7 0.3 0.0 0.0 0.0 0.0 0.0 
Financial account -68.7 -43.7 -10.9 -43.3 -18.2 -14.4 -5.3 -73.1 
Public sector -15.9 -9.1 -5.7 -18.8 -19.6 -27.6 -8.5 -18.8 
Private sector -52.8 -34.6 -5.2 -24.5 1.4 13.3 3.4 -54.3 
Errors and omissions, net 31.7 31.2 -20.5 4.3 8.8 0.0 0.0 0.0 
Overall balance -46.1 -18.0 -37.8 -52.1 -55.7 -36.9 -15.0 -77.9 
Financing of the overall balance         
Financing identified 46.1 18.0 37.8 52.2 55.7 36.9 15.0 52.2 
Net official reserves (variation)c 18.3 -7.7 18.7 14.8 13.9 2.7 -18.2 19.6 
Exceptional financing 27.8 25.7 19.1 37.4 41.8 34.3 33.2 32.6 
Residual financing needs 0.0 0.0 0.0 0.0 0.0 0.0 0.0 25.7 
.. Not available. 
a  Estimates. 
b The CFAF/US$ exchange rate is based on the first 11 months of 2006. 
c A minus sign indicates an increase. 
Source : IMF, Country Report N°05/424, Country Report N°04/167 and IMF, Central African Republic:  Request for a 
Three-Year Arrangement Under the Po verty Reduction and Growth Facility , 7 December 2006. WT/TPR/S/183/Rev.1 Trade Policy Review 
Page 8 
 
 
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%1995200020012002200320042005Chart I.2
Direction of merchandise trade, 1995-2005
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%1995200020012002200320042005(a) Exports, including re-exports (f.o.b.)
(b) Imports (c.i.f.)
Source: WTO Secretariat calculations, based on Comtrade data, mirror statistics, UNSD (SITC, Rev.3).Italy France Africa ChinaSpain Belgium Other Europe Middle East Other Asia
China BelgiumFrance Other Other AfricaPercentage
Other
Other Europe JapanCameroon Other Asia United States
 Central African Republic WT/TPR/S/183/Rev.1 
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(4) PROSPECTS  
14. Since mid-2004, the Central African Republic has embarked on a phase of reconstruction 
with support from the international community.  Al though the country's socioeconomic indicators are 
at a low following a decade-long military-political  crisis, political stabilization since 2005 offers 
grounds for hope.  This has made it possible to re vive the structural reform programme aimed at 
dismantling the various barriers and constraints existi ng in the economy, in particular those relating to 
certain State enterprises.  The programme conc luded with IMF support foresees public revenue 
growth outpacing public expenditure, which shou ld make it possible to improve the budgetary 
situation and ensure more regular payment of civi l servant wages and salaries, which are a pillar of 
consumption in the Central African Republic. 
15. Following a tentative start in 2004 and 2005, econo mic recovery seems to have taken hold in 
2006, and should in principle continue through 2007  and in the near future.  The authorities are 
forecasting real GDP growth rates of 5.8 per cent in 2007, 6.4 per cent in 2008, and 6.6 per cent in 
2009 (compared to 0.6 per cent in the period 1998-2 005), and a reduction in the annual inflation rate 
to below the 3 per cent ceiling established in th e CEMAC convergence criteria.  GDP growth is 
expected to be fuelled by significant expansion (5-7  per cent) across all sectors of economic activity, 
particularly food crops, cotton, and forestry production, the start of industrial projects to produce gold and uranium, the resumption of agribusiness activ ity, and several major building and public works 
projects.  The services sector is expected to follo w the general trend through trade and transport, as 
well as a sustained expansion of mobile teleco mmunications.  Nonetheless, the insecurity still 
prevailing in certain parts of the interior is jeopard izing economic recovery in rural areas, and without 
this, real headway on poverty re duction will be hard to achieve. 
16. The significant progress recently achieved by the Central African Republic has strengthened 
confidence among the international community a nd could help the country gain access to the 
enhanced Heavily Indebted Poor Countries (HIP C) initiative during 2007.  Heavy pressure on the 
country's Treasury means, however, that financ ial support from development partners will be 
necessary for some time.  River and road transport are priorities, since improvements in those areas 
will make it possible to reduce the excess costs arising from the country 's land-locked situation and to 
develop trade.  The authorities will draw on this trade policy review by the WTO and the Diagnostic 
Trade Integration Study (DTIS), in the context of th e Integrated Framework, to rationalize their trade 
policy and improve their business environment – efforts that should result in stronger economic 
performance in the future.