IMF calls 2001 "disappointing", but hopeful for 2002

Following a recent assessment mission, the International Monetary Fund (IMF) has described the Republic of Congo's (ROC) economic performance in 2001 as "disappointing", while recognising "the very difficult circumstances under which the [nation] had embarked, with limited external assistance and under severe capacity constraints, on an economic and financial programme". In a summary issued on 25 February after the conclusion of their 2001 Article IV consultation with ROC authorities, IMF directors found the 2002 budget to be "broadly consistent" with established priorities. However, they emphasised: * the importance of sustained efforts to raise non-oil-revenue collection and tighten expenditure control; * the central role that an effective management of ROC's oil resources should play in contributing to poverty reduction efforts; * the importance of accelerating structural reforms aimed at creating an environment conducive to private-sector development and diversification of the economy; * the need for substantial financial and technical assistance to build administrative capacity and to help meet the country's reform and poverty reduction challenges; and * that serious shortcomings in ROC's statistical base hamper a timely assessment of economic conditions and the design of appropriate policies. Nevertheless, IMF executive directors commended the progress made by the ROC in "laying the foundations for lasting peace and stable political institutions", and were encouraged by the "home-grown nature" of this post-war renewal. The IMF also welcomed the strong recovery of the non-oil sector, as well as the ROC authorities' efforts to rebuild the country's physical and institutional infrastructure. "The challenge now is to consolidate these gains, implement market reforms quickly, and strengthen public economic and financial management, notably by improving transparency in the oil sector, so as to create conditions for strong, broad-based growth, and sustained poverty reduction," the IMF summary stated. Under Article IV of its Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country's economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the executive board. At the conclusion of the discussion, a summary is sent to the country's authorities. For the complete summary, go to http://www.imf.org