News Column

Congo increases copper production 52% y/y to 942,000 tonnes in 2013.

February 27, 2014

Democratic Republic of Congo boosted its total copper production by 52% y/y to 942,000 tonnes in 2013 from 619,000 tonnes in 2012, Norbert Toe from the International Monetary Fund (IMF) announced.

The IMF estimates that Congo economy has grown 8.5% in 2013 and the GDP growth is expected to accelerate to 8.7% in 2014. However, it will still fall short from the government's double-digit growth target.

Annual inflation in Congo declined to a record low of 1.1% at end-2013, which also compares favorably with the government's medium-term target of 4.0%.

Congo maintained economic stability last year thanks to the tight fiscal stance, and the main challenges for Congo are still to sustain macroeconomic stability and to improve living conditions in the country, according to Toe.

The short-term outlook is still promising with low inflation and high GDP growth forecasts in 2014 driven by continued buoyant mining sector activity, Toe commented.

The current account position is expected to improve slightly with the contribution of the strong mining exports. Still, the flexible exchange rate and improvements for the structural competitiveness of the economy should be maintained in order to avoid risks occurring from a possible decline in commodity prices and domestic political uncertainties, according to IMF.

Congo's economy heavily depends on the mining industry, however, the full extent of overall mining reserves has not been identified yet due to on-going political conflicts in the country.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: IntelliNews - Weekly Reports

Story Tools