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Economic analysis
Republic of Congo
Contents
Introduction
Location
Demographics
Population
Age structure
Population growth rate
Sex ratio
Nationality
Religions
Economy of Republic of Congo
Dependency on petroleum
Timber Decline
Employment
Measures for economic reform
War of 1997
Post 1997
Facts and figures
National Account
External sector (CFAF billions)
Financial transactions by the State (CFAF billions)
Economic Problems in Republic of Congo
Congos government statement on its poverty reduction strategy
Oil depletion and fiscal policy
Fiscal indicators
Future of Congo: Will oil last long enough?
Annual oil production forecast
National oil price forecast
Primary balance forecast
Conclusion
Introduction
Location
Capital
Brazzaville (4o14′S, 15o14′E)
Official languages
French
Recognised regional languages
Kongo/Kituba, Lingala
Area
Total – 342,000 kmІ
Water – 3.3%
GDP
2005 estimate – Total $4.585 billion (154th)
Per capita $1,369 (161st)
Currency
Central African CFA franc (XAF/CFAF)
Demographics
The Republic of the Congos sparse population is concentrated in the southwestern portion of the country, leaving the vast areas of tropical jungle in the north virtually uninhabited. Thus, Congo is one of the most urbanized countries in Africa, with 85% of its total population living in a few urban areas, namely in Brazzaville, Pointe-Noire, or one of the small cities or villages lining the 332-mile railway which connects the two cities. In rural areas, industrial and commercial activity has declined rapidly in recent years, leaving rural economies dependent on the government for support and subsistence.
Population
Total – 3,702,314
Age structure
0-14 years: 46.4% (male 864,407/female 853,728)
15-64 years: 50.7% (male 930,390/female 945,545)
65 years and over: 2.9% (male 44,430/female 63,814) (2006 est.)
Population growth rate
2.60% (2006 est.)
Sex ratio
At birth: 1.03 male(s)/female
Under 15 years: 1.01 male(s)/female
15-64 years: 0.98 male(s)/female
65 years and over: 0.7 male(s)/female
Total population: 0.99 male(s)/female (2006 est.)
Nationality
Noun: Congolese (singular and plural)
Adjective: Congolese or Congo
Religions
Christian 50%, animist 48%, Muslim 2%
Economy of Republic of Congo
The economy of the Republic of the Congo is a mixture of village agriculture and handicrafts, an industrial sector based largely on petroleum extraction, support services, and a government characterized by budget problems and overstaffing.
Dependency on petroleum
The Congos growing petroleum sector is by far the countrys major revenue earner. In the early 1980s, rapidly rising oil revenues enabled the government to finance large-scale development projects with GDP growth averaging 5% annually, one of the highest rates in Africa. However, the government has mortgaged a substantial portion of its oil earnings, contributing to the governments shortage of revenues. The Congolese oil sector is dominated by the French parastatal oil company Elf Aquitaine, which accounts for 70% of the countrys annual oil production. In second position is the Italian oil firm Agip. Chevron, independent CMS Nomeco, and Exxon Mobil are among the American companies active in petroleum exploration or production. Following recent discoveries and oil fields currently under development, Congos oil production is expected to continue to rise significantly in the next few years.
Timber Decline
The countrys abundant rain forests are the source of timber. Forestry, which led Congolese exports before the discovery of oil, continues to generate 10% of export earnings, although high transportation costs, high wages, and low productivity have hurt the forestry industry in recent years.
Employment
Earlier in the decade, Congos major employer was the state bureaucracy, which had a payroll of 80,000, which