Congo’s economy grew by 2.6% in 2024, marking the first rise in real income per capita since 2016, according to a new economic update. The report notes that while agriculture and manufacturing have seen gains—helped by policies supporting local farm inputs and increased regional demand—these improvements have not led to significant reductions in poverty.
Oil production declined due to technical problems and lower prices, underlining the vulnerability of Congo’s growth model, which remains heavily reliant on hydrocarbons. Non-oil sectors showed strong revenue growth of 11%, but job creation lagged at just 3%. This gap is attributed to persistent challenges such as unreliable electricity supply and limited access to finance.
Government revenues increased to 25.1% of GDP in 2024, up from 24.3% in the previous year, driven by higher non-oil tax collections and stricter enforcement measures. However, spending also rose—to 22.4% of GDP—due largely to increased domestic interest payments and social transfers, which narrowed the budget surplus.
Congo’s debt-to-GDP ratio has fallen from its peak of 103.6% in 2020 to 93.6% in 2024. Despite this improvement, a larger share of debt is now held domestically, raising liquidity risks as debt service consumed about half of government revenues by the end of last year. The government responded with a plan to restructure its debt.
Looking ahead, economic growth is projected at 2.8% for 2025 with modest recovery expected through 2027. The report warns that external uncertainties—including tighter financial conditions and declining oil demand—could challenge fiscal stability.
The update emphasizes that long-term prosperity depends on how Congo manages its human resources, natural environment, and infrastructure investments. While total national wealth nearly doubled between 1995 and 2020—with human capital accounting for the largest share—the wealth per person has dropped due to insufficient investment in people and environmental degradation amid rapid population growth.
Forests cover more than two-thirds of Congo’s territory and store around 16 billion tons of carbon but are increasingly threatened; forest cover shrank by nearly two percent between 2000 and 2020 alongside biodiversity loss. Strengthening governance over forests—including digital traceability systems—and expanding local wood processing could help create jobs while protecting these resources.
Health and education spending has fluctuated with oil revenues over time, limiting progress on learning outcomes and productivity improvements needed for broad-based development. The report recommends prioritizing stable funding for health and education services—especially vocational training aligned with labor market needs—to reduce poverty and improve livelihoods.
Key recommendations include:
- Enhancing fiscal sustainability through stronger non-oil revenue collection, rationalized spending, better debt management practices, improved transparency around state-owned enterprise liabilities.
- Expanding private sector involvement in infrastructure via public-private partnerships.
- Increasing targeted investments in health care and education.
- Updating legal frameworks for extractive industries while improving oversight.
- Maximizing renewable natural capital through better land governance systems (including digital tools), incentives for sustainable practices, agricultural productivity programs, ecotourism promotion, rural energy expansion, readiness for climate finance mechanisms.
- Securing international support through fair compensation schemes for forest preservation efforts such as REDD+, innovative financing like sustainability-linked bonds, climate funding cooperation.
“International support is essential to complement Congo’s efforts to preserve its forests,” the report states: “notably through fair compensation mechanisms and strengthened REDD+ frameworks, climate financing and enhanced cooperation as well as innovative nature-based financing instruments (for example sustainability-linked bonds).”