By Zuzana Brixiova Schwidrowski, Aloysius Uche Ordu
DRC has better growth and fiscal prospects than regional peers…
Following a slowdown in real GDP growth induced by the COVID-19 pandemic, the Democratic Republic of Congo (DRC) posted a robust rebound (6.2 percent) in 2021. According to recent IMF forecasts, economic growth remained above 6 percent in 2022, with GDP growth projected to reach 6.3 percent in 2023. DRC’s growth will thus remain above the average for sub-Saharan Africa (SSA), driven by the extractives sector and improved utilization of other natural resources. The country’s overall public and publicly-guaranteed debt is also relatively low—at 24 percent of debt-to-GDP as at the end of 2022, it is less than half of the SSA average with only moderate risk of debt distress. High political and security risks, however, continue to dampen economic prospects and underscore the importance of governance reforms.
… But like most African sovereigns, DRC is caught in a low ratings trap
In November 2022, Moody’s Investors Service (Moody’s) upgraded DRC’s long-term local and foreign currency sovereign ratings to B3 (a high credit risk) from Caa1 (a very high credit risk). While the move is positive for…
