Thursday, August 3, 2017
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.
- 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.