ECONOMY
The Central African Republic is classified as one of the world's least developed countries, with a 2007 annual per capita income of $700 (purchasing power parity). Sparsely populated and landlocked, the nation is overwhelmingly agrarian, with the vast bulk of the population engaged in subsistence farming; 56% of the country's gross domestic product (GDP) came from agriculture in 2006. Principal crops include cotton, food crops (cassava, yams, bananas, maize), coffee, and tobacco. In 2002, timber accounted for about 30% of export earnings. The country also has rich but largely unexploited natural resources in the form of diamonds, gold, uranium, and other minerals. There may be oil deposits along the country's northern border with Chad. Diamonds are the only of these mineral resources currently being developed; in 2002, diamond exports made up close to 50% of the C.A.R.'s export earnings. Industry contributed only about 15% of the country's GDP in 2006, with artesian diamond mining, breweries, and sawmills making up the bulk of the sector. Services accounted for about 29% of GDP in 2006, largely because of the oversized government bureaucracy and high transportation costs arising from the country's landlocked position.
Hydroelectric plants based in Boali provide much of the country's limited electrical supply. Fuel supplies must be barged in via the Ubangui River or trucked overland through Cameroon, resulting in frequent shortages of gasoline, diesel, and jet fuel. The C.A.R.'s transportation and communication network is limited. The country has only 650 kilometers of paved road, limited international and no domestic air service (except charters), and does not possess a railroad. Commercial traffic on the Ubangui River is impossible from December to May or June, and conflict in the region has sometimes prevented shipments from moving between Kinshasa and Bangui. The telephone system functions, albeit imperfectly. Four radio stations currently operate in the C.A.R., as well as one television station. Numerous newspapers and pamphlets are published on a regular basis, and at least one company has begun providing Internet service.
In the more than 40 years since independence, the C.A.R. has made slow progress toward economic development. Economic mismanagement, poor infrastructure, a limited tax base, scarce private investment, and adverse external conditions have led to deficits in both its budget and external trade. The country saw a 30-year decline in per capita gross national product (GNP), and its debt burden is considerable. Structural adjustment programs with the World Bank and International Monetary Fund (IMF) and interest-free credits to support investments in the agriculture, livestock, and transportation sectors have had limited impact. The World Bank and IMF are now encouraging the government to concentrate exclusively on implementing much-needed economic reforms to jumpstart the economy and defining its fundamental priorities with the aim of alleviating poverty. As a result, many of the state-owned business entities have been privatized and limited efforts have been made to standardize and simplify labor and investment codes and to address problems of corruption. The C.A.R. Government has adopted the Central African Economic and Monetary Community (CEMAC) Charter of Investment, and is in the process of adopting a new labor code.
GDP (2007, nominal): $1.647 billion.
Annual real GDP growth rate: -7.2% (2003); 0.5% (2004 est.); 3% (2006 est.); 3.045% (2007 est.).
Per capita income (2007, PPP): $700.
Avg. inflation rate: (2007): 0.9%.
Natural resources: Diamonds, uranium, timber, gold, oil.
Agriculture (2006, 56% of GDP): Products--Timber, cotton, coffee, tobacco, food crops, livestock. Arable land--3.1%.
Industry (2006, 15% of GDP): Types--Diamond mining, sawmills, breweries, textiles, footwear, assembly of bicycles and motorcycles, and soap.
Services (2006): 29% of GDP.
Trade (2007): Exports--$146.7 million f.o.b.; diamonds, coffee, cotton, timber, tobacco. Major markets--Belgium, Italy, France, Luxembourg, Germany, Egypt, Spain, and Cote d'Ivoire. Imports--$237.3 million f.o.b.; food, textiles, petroleum products, machinery, electrical equipment, motor vehicles, chemicals, pharmaceuticals, consumer goods, industrial products. Major suppliers--France, United States, Cote d'Ivoire, Cameroon, Germany, Japan.
Central government budget (2007): $250 million.
Defense (2006): 1.1% of GDP.
Fiscal year: Calendar year.
