Publication: Central African Republic (CAR) Economic Update: 7th Edition - Optimizing CAR’s Multidimensional Wealth for Sustainable Prosperity
Loading...
Published
2025-06-30
ISSN
Date
2025-10-08
Author(s)
Editor(s)
Abstract
The 2025 Economic Update for the Central African Republic (CAR) analyzes the 2024 economic and poverty trends, provides a baseline outlook for 2025-27, and explores strategies to optimize multidimensional wealth for sustainable growth and prosperity. The report is divided into two chapters: Chapter 1 reviews recent economic developments and poverty dynamics, while Chapter 2 focuses on leveraging CAR’s natural, produced, and human capital to address persistent challenges and unlock prosperity.
Link to Data Set
Citation
“World Bank. 2025. Central African Republic (CAR) Economic Update: 7th Edition - Optimizing CAR’s Multidimensional Wealth for Sustainable Prosperity. © World Bank. http://hdl.handle.net/10986/43817 License: CC BY-NC 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Related items
Showing items related by metadata.
Publication Central African Republic Economic Update, July 2021(World Bank, Washington, DC, 2021-07)The economy of the Central African Republic (CAR) decelerated in 2020 compared to 2019. Despite a relatively contained health impact, the coronavirus disease 2019 (COVID-19) pandemic has had a significant impact on the country’s economy, with the disruption in global value chains, low external demand, and domestic containment measures that significantly affected trade, transport, and tourism. Nevertheless, CAR’s GDP growth of 0.8 percent has outpaced the average of regional peers (−2.9 percent) and countries affected by fragility, conflict and violence (FCV) (−1.7 percent). On the supply side, the positive dynamic of the agriculture sector prevented the economy from entering a recession, and the forestry and telecommunications sectors were more resilient than expected. On the demand side, private consumption contracted in 2020, reflecting a decline in household income owing to the pandemic. As a result, the extreme poverty rate increased from 70.7 percent in 2019 to 71.4 percent, affecting a total of more than 3.4 million people, in 2020. CAR’s current account balance (CAD) deteriorated in 2020. The current account deficit widened from 4.8 percent of GDP in 2019 to 8.7 percent of GDP in 2020, driven by weak external demand and private transfers as well as an increased deficit of the balance on goods. With the COVID-19 pandemic, goods exports declined while non-oil imports were boosted by donor-funded investments. CAR’s current account deficit is not expected to be as severe as that of comparator FCV, CEMAC, and Sub-Saharan African (SSA) countries. The capital account balance improved significantly in 2020 due to the rise in external grants, while the financial account surplus shifted into a deficit. The improvement in the capital account has helped narrow the balance of payments deficit and increasing foreign reserves, which reached a level equivalent to about 3.5 months imports at end-2020.Publication Central African Republic Economic Update - Weathering Growing Risks(Washington, DC: World Bank, 2023-04-26)The economy of the Central African Republic (CAR) stagnated in 2021 compared to 2020. Insecurity and disruptions in supply chains drove inflation above the regional ceiling of 3 percent in 2021. Fiscal pressures mounted in 2021 and led to a deterioration in the fiscal position, lingering debt vulnerabilities. CAR’s current account balance deteriorated further in 2021 due to a sharp decline in official transfers. Delays in the global economic recovery and the impact of the war in Ukraine could be detrimental to CAR’s economic outlook. In the short term, the proposed road to a robust, resilient, and inclusive recovery could be based on the following four pillars: (i) Promoting peace and security and strengthening social safety net programs to cushion the impact of overlapping crises on the most vulnerable; (ii) Pursuing the vaccination campaign to reduce the risk of new COVID-19 waves and the emergence of new variants remains critical and will require both domestic and global efforts; (iii) Reducing fiscal imbalances by responding to treasury pressures without adding to debt vulnerability; and (iv) Enabling trade and private sector development.Publication Republic of Congo’s Road to Prosperity: Building Foundations for Economic Diversification(Washington, DC: World Bank, 2023-03-01)This Country Economic Memorandum (CEM) contributes to the Government’s diversification agenda by identifying and advocating key policies and reforms to build the foundations for more “diversified development” in Congo that will support long-term economic growth and prospects for a better life for the Congolese people. The report comprises six chapters. The first chapter discusses Congo’s economic developments during the last 15 years and analyzes in detail the factors that prevented the country from diversifying its assets. Since rising labor productivity is required to boost the growth of Congo’s income per capita, the second chapter analyzes labor productivity using firm level data, a first attempt in Congo. Because removing barriers to competition enhances productivity, the third chapter undertakes a diagnostic of competition practices, including the role of state-owned enterprises (SOEs), and provides a detailed analysis of the electricity and telecommunication competition environments. The fourth chapter explores the extent to which digital transformation and access to reliable electricity services can spur productivity and economic growth. As greater trade integration is a driver of structural transformation, the fifth chapter discusses trade patterns and explores the opportunities for Congo to diversify its exports. The sixth chapter looks over two key trade-related topics, logistics and ecotourism, that have the potential to contribute significantly to export and economic diversification in Congo.Publication Central African Republic Public Expenditure Review in Key Human Development Sectors(Washington, DC: World Bank, 2024-02-29)This Public Expenditure Review (PER) provides an analytical basis to decision makers and stakeholders for the formulation of ambitious yet fiscally responsible interventions to improve human capital outcomes in CAR. The PER examines public expenditure trends of the education, health, and SP sectors with a focus on adequacy,efficiency, and equity of expenditures as well as human resource management (HRM). The primary objective is to provide analytical insights for government policy development and prioritization strategy as it seeks to achievea resilient recovery, rebuild its education and health sectors, and establish a strong SP system that will help the poorest households invest and protect their own human capital. The PER can also serve as a useful source of knowledge and information to development partners seeking to deepen the impact of their support to thehuman capital development sectors. The recommendations put forth by the PER are those identified as fiscally sustainable and most important for rebuilding and strengthening human capital development sectors, including a focus on future human resource (HR) recruitment needed in the education and health sectors.Publication Central African Republic - Public Expenditure Review in Key Human Development Sectors(Washington, DC: World Bank, 2023-09-12)This is an overview of the CAR Human Development (HD) Public Expenditure Review (PER). This overview provides an analytical basis to decision-makers and stakeholders for the formulation of ambitious yet fiscally responsible interventions to improve human capital outcomes in CAR. The PER examines public expenditure trends of the education, health, and social protection (SP) sectors with a focus on adequacy, efficiency, and equity of expenditures as well as human resource management (HRM). The primary objective is to provide analytical insights for government policy development and prioritization strategy as it seeks to achieve a resilient recovery and rebuild its education and health sectors and establish a strong SP system which will help the poorest households invest and protect their own human capital. The PER can also serve as a useful source of knowledge and information to development partners seeking to deepen the impact of their support to the human capital development sectors. The recommendations put forth by the PER are those identified as fiscally sustainable and most important for rebuilding and strengthening human capital development sectors, including a focus on future human resource (HR) recruitment needed in the education and health sectors.
Users also downloaded
Showing related downloaded files
Publication Uganda Country Climate and Development Report(Washington, DC: World Bank, 2025-09-10)The Country Climate and Development Report (CCDR) for Uganda examines the interplay between climate change and development. It presents how addressing climate change can support achieving the goals in Uganda’s Vision 2040 and Ten-Fold Growth Strategy, and help propel the country to upper-middle-income status. Uganda is the 14th most vulnerable nation to climate change, yet it is 163rd in readiness to address these risks, facing threats such as droughts and floods. The report highlights that, of the poorest households exposed to climate change, 80 percent already experience income loss from climate shocks. GDP could also drop by up to 3.1 percent by 2050 without additional climate action. Climate change poses numerous challenges, including increased variability in crop yields, potential internal climate migration of 12 million people by 2050, notable drop in labor productivity due to heat stress, increased health risks from waterborne diseases and malaria, and exposure of the country’s physical infrastructure to extreme climate events. To combat these challenges, the report recommends transitioning to a low-carbon, climate-resilient growth path by implementing four multisectoral intervention packages. These include boosting resilience through jobs for youth and services for the poor; promoting resilient and productive agriculture and natural resources with lower GHG emissions; developing climate-responsive energy, transport, and digital infrastructure; and fostering planned and climate-positive urbanization. Additionally, the report calls for whole-of-economy measures that strengthen governance of climate action, enhance preparedness for climate hazards including through improved early warning systems, operationalization of the national climate finance strategy, and incentivizing private sector participation. By implementing these intervention packages and whole-of-economy measures, Uganda can lower its risk to climate change and achieve sustainable economic growth.Publication Thailand Country Climate and Development Report(Washington, DC: World Bank, 2025-10-01)The Thailand Country Climate and Development Report (CCDR) identifies ways in which Thailand can achieve economic development that is greener and more climate resilient. Despite several decades of development success, Thailand’s aspirations to become a high-income economy are facing headwinds: investment growth has slowed, structural transformation out of agriculture and into higher value-added activities has stalled, rising global protectionism poses threats to exports, and the population is aging rapidly. Incomes and wealth are concentrated in Bangkok, while other parts of the country struggle to develop. Climate change is reinforcing and exacerbating these challenges. Urban flooding risks are among the highest in the world and Bangkok – which hosts a concentration of Thailand’s export-oriented industries – remains especially vulnerable. The relatively poor north and north-eastern parts of Thailand are vulnerable to drought, water shortages, and changing rainfall patterns, which will continue to impact agricultural production, exacerbating existing inequalities. Heat waves and prolonged heat exposure directly impact labor productivity and well-being, as well as increasing risks of illness.Publication Congo Basin Forest Ecosystem Accounts and Policy Recommendations: A Regional Synthesis Report of Ecosystem Extent, Condition, Services, and Asset Accounts 2000-2020(Washington, DC: World Bank, 2025-08-01)This regional synthesis report of the Congo Basin Forest Ecosystem Accounts (2000-2020) compiled from data for each these six countries (namely: Cameroon, Central African Republic, Democratic Republic of Congo, Equatorial Guinea, Gabon, and Republic of Congo. Ecosystem accounting enables countries to assess the value of their ecological capital, a key component of national wealth, by monitoring changes in ecosystem extent, condition, and ecosystem services in both physical and monetary terms. The accounts follow the System of Environmental-Economic Accounting (SEEA) Ecosystem Accounting methods, a standardized framework that uses concepts, definitions, and classifications consistent with the System of National Accounts (SNA). The individual country reports are also available. The value of domestic benefits provided by the forest ecosystems is significant, ranging from one percent of GDP for Equatorial Guinea to 15.4 percent of GDP for the Central African Republic. With global climate regulation being especially important, reflecting more than 95 percent of the value in most countries. Forest ecosystems in the Congo Basin retained around 90.9 billion tons of carbon in 2020, equivalent to 333.5 billion tons of carbon dioxide, which is 10x the amount of the total global emissions from the energy sector in 2020 (34.5 billion tons). The total asset value of the Congo Basin’s forests has almost doubled from US$ 12.3 trillion in 2000 to US$ 23.2 trillion in 2020. The overall asset value without the global public good value of climate change regulation stood at US$ 106 billion in 2000 and US$ 154 billion in 2020. While the total asset values are increasing, the per capita values are not keeping up with population growth. If one excludes the global public good value of carbon the picture becomes more negative, with a decrease in per capita of forests across all countries. These accounts should be institutionalized and enhanced periodically to inform policy and planning. The Congo Basin forests offer substantial ecological benefits, many of which remain unmonetized. These forest ecosystem accounts can improve understanding and inform policy development relating to the natural resource management sectors and those that impact on these assets, and on monetization of these critical ecosystem services.Publication Togo Economic Update, August 2025: Boosting Growth and Restoring Fiscal Space in Uncertain Times(Washington, DC: World Bank, 2025-08-28)Togo’s economic trajectory in recent years has been shaped by both resilient performance and emerging vulnerabilities. The 2025 Economic Update underscores the urgency of restoring fiscal space and implementing strategic structural reforms to sustain private sector-led growth and job creation. Through an integrated analysis in two chapters, the report presents a nuanced narrative of the country’s macroeconomic outlook and delineates actionable policy paths to foster inclusive, sustainable development.Publication Jobs in a Changing Climate: Insights from World Bank Group Country Climate and Development Reports Covering 93 Economies(Washington, DC: World Bank, 2025-11-05)The World Bank Group’s Country Climate and Development Reports (CCDRs) provide a crosscutting look at how countries’ development prospects, and the job opportunities they offer to their people, can be threatened by climate impacts and supported by climate policies. Climate change and policies affect jobs through impacts on productivity, energy and material efficiency, and physical, human, and natural capital. They can also transform employment opportunities, especially through complementary measures that help workers and firms adapt to and benefit from new technologies and production practices. Prepared by the World Bank, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA), CCDRs integrate country perspectives, climate science and economic modeling, private sector information, and policy analysis to assess how countries can successfully grow and develop their economies and create jobs despite increasing climate risks and while achieving their climate objectives and commitments. Each CCDR starts from the country’s development priorities, opportunities, and challenges, and is developed in close consultation with governments, businesses, and civil society, ensuring the recommendations reflect national priorities. By combining evidence on adaptation, resilience, and emissions pathways, CCDRs highlight where climate action can reinforce development and job creation, and where targeted policies are needed to manage risks and smooth labor market transitions. Taken together, these elements can help create local jobs, ensure economic transitions are just and inclusive, and equip workers and firms to navigate the disruptions and opportunities of a changing climate and changing technologies.