Economy in trouble says IMF

As the International Monetary Fund (IMF) for the first time in years has been able to assess economic trends in Comoros, the figures show a sharp decline due to recent political turmoil, a recent IMF report has concluded. Trends on the separatist island of Anjouan seem even worse. Large fiscal imbalances reportedly led to serious disruptions in government services in 1997-98, which were further exacerbated by political instability, the report said. “Against this background, real GDP, which grew by less than the population during much of the 1990s, declined by 1.1 percent in 2000.” The IMF attributes the negative GDP to “a slowdown in donor support, mounting disruptions in electricity supply, and the lack of investment in the main agricultural export products.” These products include vanilla, cloves and the natural essence ylang-ylang. The economic downward trends are attributed to “the political turmoil” on the Indian Ocean archipelago, including the conflict with the separatist government on the island of Anjouan since 1997 and the military coup in the capital Moroni in 1999. There are, however, signs of recovery in Comoros. The IMF especially counts on the reconciliation process between the Moroni government and Anjouan. It also recognises that the Moroni government is making positive steps towards recovery. The IMF wants the authorities further should “reduce employment in the public sector as part of a civil service reform programme” and “complete expenditure reviews in the education and other sectors”.