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Congo's economy affords limited political opening

Thursday, August 3, 2017

Significance

Underneath Congo’s deepening political crisis there also lies an acute balance-of-payments crisis. Despite relative improvements in the price of key exports, currency depreciation and rampant inflation are driving liquidity constraints and exacerbating socio-economic risks.

Impacts

  • Rising prices and stagnant wages may prompt fresh economic protests or strikes.
  • As growth slows, central bank funding could become a more important source of political patronage.
  • Neighbours' sympathy for DRC's sovereignty claims will undercut international efforts to ensure a political transition.
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