Front Matter Page

© 2004 International Monetary Fund

July 2004

IMF Country Report No. 04/231

Republic of Congo: Selected Issues and Statistical Appendix

This Selected Issues paper and Statistical Appendix for the Republic of Congo was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on May 21, 2004. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of the Republic of Congo or the Executive Board of the IMF.

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Front Matter Page

INTERNATIONAL MONETARY FUND

REPUBLIC OF CONGO

Selected Issues and Statistical Appendix

Prepared by a staff team consisting of Mr. Ghura (head), Mr. Leite, Mr. Karangwa (all AFR), Mr. Op de Beke (PDR), and Mr. Moussa (FAD)

Approved by the African Department

May 21, 2004

Contents

• I. Introduction

• II. Political and Security Situation

  • A. Background

  • B. Recent Developments

  • C. Cost of Conflicts

• Boxes

• II.1. Chronology of Key Political Events Since Independence

• Tables

• II.1. Selected Economic and Social Indicators, 1970–2003

• III. Economic Performance During 1970–2003

  • A. Output Expansion, 1970–84

  • B. Output Collapse, 1985–99

  • C. Recent Output Recovery, 2000–03

  • D. Observations and Evaluation

• Boxes

• III.1. Performance Under Fund Programs, 1986–2003

• III.2. Program Implementation in 2003

• Tables

• III.1. Selected Indicators of Economic Performance, 1970–2003

• Figures

• III.1. Macroeconomic Performance, 1970–2003

• III.2. Selected Economic Indicators, 1970–2003

• III.3. Oil Price, Government Spending, and Non-Oil Output, 1975–2003

• IV. Recent Reforms in Public Finance Management

  • A. The Budget Framework

  • B. Revenue Mobilization

  • C. Expenditure and Cash Management

  • D. Future Steps

• V. Constraints to Economic Growth and Poverty Reduction

• Tables

• V.1. Cross Section Comparative Economic and Social Performance: 1970–99

• V.2. Cross Section and Time Series Comparative Economic and Social Performance: 1970–99

• Figures

• V.1. Per Capita GDP: Republic of Congo and Comparator Groups, 1970–2001

• V.2. Per Capita Real GDP Growth: Republic of Congo and Comparator Groups, 1970–99

• V.3. Natural Resource Dependence: Republic of Congo and Comparator Groups, 1970–99

• V.4. Government Size: Republic of Congo and Comparator Groups, 1970–99

• V.5. Financial Depth: Republic of Congo and Comparator Groups, 1970–99

• V.6. Adult Illiteracy Ratio: Republic of Congo and Comparator Groups, 1970–99

• V.7. Secondary School Enrollment Ratio: Republic of Congo and Comparator Groups, 1970–99

• V.8. Life Expectancy at Birth: Republic of Congo and Comparator Groups, 1970–99

• V.9. External Debt: Republic of Congo and Comparator Groups, 1970–99

• V.10 Institutions and Governance: Republic of Congo and Comparator Groups, 2002

• VI. Sources of Economic Growth, 1970–2003

• Tables

• VI.1 Sources of Growth: 1970–2003

• Figures

• VI.1. Sources of Economic Growth, 1975–2003

• VII. Prudent Management of Oil Wealth

  • A. Fiscal Sustainability

  • B. Fiscal Policy in the Congo

• Tables

• VII.1 Fiscal Sustainability Approach Based on Intergenerational Objectives, 2003–13

• VIII. Key Lessons and Challenges

  • A. Avoiding Conflicts

  • B. Avoiding Pro-Cyclical Government Spending

  • C. Promoting Private Sector Growth

  • D. Alleviating the Debt Burden

• Statistical Appendix Tables

• Basic Data, 1997–2003

• 1. Gross Domestic Product at Constant 1990 Prices, 1997–2003

• 2. Gross Domestic Product at Current Prices, 1997–2003

• 3. Supply and Use of Resources at Constant 1990 Prices, 1997–2003

• 4. Supply and Use of Resources at Current Prices, 1997–2003

• 5. Saving and Investment Balances, 1996–2003

• 6. Production of Principal Crops, 1996/97–2002/03

• 7. Fishing Production, 1997–2003

• 8. Wood Production, 1997–2003

• 9. Oil Production by Field, 1997–2003

• 10. Oil Refinery Production, 1997–2003

• 11. Consumption of Refined Petroleum Products, 1997–2003

• 12. Industrial Production, 1997–2003

• 13. Electricity Generation, 1997–2003

• 14. Rail and River Traffic, 1997–2003

• 15. Price Indices for Brazzaville, 1997–2003

• 16. Representative Retail Prices of Major Food Items in Brazzaville, 1997–2003

• 17. Central Government Employment by Ministry, 1997–2003

• 18. Central Government Financial Operations, 1997–2003

• 19. Central Government Revenue, 1997–2003

• 20. Central Government Revenue Trends, 1997–2003

• 21. Central Government Expenditure Trends, 1997–2003

• 22. Monetary Survey, 1997–2003

• 23. Summary Accounts of the Central Bank, 1997–2003

• 24. Summary Accounts of the Commercial Banks, 1997–2003

• 25. Interest Rate Structure, 1997–2003

• 26. Balance of Payments, 1997–2003

• 27. Balance of Payments of the Oil and Non-Oil Sectors, 1999–2003

• 28. Composition of Exports, 1997–2003

• 29. Services, Income, and Transfers, 1997–2003

• 30. Capital and Financial Accounts, 1997–2003

• 31. External Trade Indices, 1997–2003

• 32. External Public Debt and Debt Service, 1997–2003

• 33. Exchange Rate Indices, 1997–2003

• Appendix

• Summary of Tax System, 2004