Economy Overview
Subsistence agriculture, together with forestry, remains the backbone of the economy of the Central African Republic (CAR), with more than 70% of the population living in outlying areas. The agricultural sector generates half of GDP. Timber has accounted for about 16% of export earnings and the diamond industry for nearly 54%. Important constraints to economic development include the CAR's landlocked position, a poor transportation system, a largely unskilled work force, and a legacy of misdirected macroeconomic policies. The 50% devaluation of the currencies of 14 Francophone African nations on 12 January 1994 had mixed effects on the CAR's economy. Diamond, timber, coffee, and cotton exports increased, leading an estimated rise of GDP of 7% in 1994 and nearly 5% in 1995. Military rebellions and social unrest in 1996 were accompanied by widespread destruction of property and a drop in GDP of 2%. Ongoing violence between the government and rebel military groups over pay issues, living conditions, and political representation has destroyed many businesses in the capital and reduced tax revenues for the government. The IMF approved an Extended Structure Adjustment Facility in 1998. The government has set targets of annual 5% growth and 2.5% inflation for 2000-2001.
Agriculture Products
cotton, coffee, tobacco, manioc (tapioca), yams, millet, corn, bananas; timber
Industries
diamond mining, sawmills, breweries, textiles, footwear, assembly of bicycles and motorcycles
Industrial Production Growth Rate
NA%
Electricity production
105 million kWh (1998)
Electricity production by source
Fossil fuel: 19.05%
Hydro: 80.95%
Nuclear: 0%
Other: 0% (1998)
Electricity Consumption
98 million kWh (1998)
Electricity Exports
0 kWh (1998)
Electricity Imports
0 kWh (1998)
Currency
1 Communaute Financiere Africaine franc (CFAF) = 100 centimes
Unemployment Rate
6% (1993)
Population Below Poverty Line
NA%
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA%
Budget
Revenues: $638 million
Expenditures: $1.9 billion, including capital expenditures of $888 million (1994 est.)
Commercial Bank Prime Lending Rate
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
Debt External
$790 million (1999 est.)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
Note: since 1 January 1999, the CFAF is pegged to the euro at a rate of 655.957 CFA francs per euro
