By George Mwangi
Special to Dow Jones Newswires
Chad's economy shrunk by 1.1% in 2021 largely due to global oil-price volatility and a significant deterioration in the output of the oil sector, an International Monetary Fund mission said late Wednesday.
The economy was also impacted adversely by the Covid-19 pandemic, the IMF mission chief Edward Gemayel said.
"The pandemic will likely leave long-lasting scars, and the Chadian economy is projected to remain weak over the near term, before gradually rebounding in 2024, to 3.6%, provided adequate reforms are implemented," Mr. Gemayel said.
In 2021, average annual inflation was contained after soaring to 4.5% in 2020, he said.
"Public spending pressures are rising due to security and social tensions," Mr. Gemayel said. "Maintaining fiscal discipline in the run-up to the parliamentary and presidential elections is critical for macroeconomic stability."
Chad is one of Africa's largest oil producers and exporters. Its oil reserves are estimated at around 1.5 billion barrels as of 2020, according to a recent U.S. International Trade Administration report.
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(END) Dow Jones Newswires
01-19-22 0559ET
