Economy

Economic policymaking is geared towards making the economy more competitive by increasing investment in infrastructure and promoting agriculture, fisheries and tourism as key sectors for growth and job creation. The government is seeking to capitalise on its geostrategic location by drumming up investment for its major port development plans. The project is ambitious, requiring estimated investment of US$800m (the Chinese have pledged investment of US$120m),.

Overall, policy will be guided by a new three-year US$6.2m extended credit facility (ECF) agreed with the IMF in July. Progress under the previous agreement was mixed, but the government's working parliamentary majority should facilitate the passage of much-needed structural reforms to bolster the public finances and reduce its dependence on donor financing. That said, limited administrative capacity, in addition to volatile aid and investment inflows, means that progress on implementation will be slow. Long-standing proposed reforms, such as overhauling the fuel and power subsidy regime and addressing problems at some state-owned utilities, are likely to be hindered by vested interests.

 

 

2010[a]

2011[a]

2012[a]

2013[a]

2014[a]

GDP at market prices (Db bn)

3,718.90

4,375.50

5,021.30

5,732.10

6,184.40

GDP (US$ m)

201

248.3

263.3

310.7

334.9

Real GDP growth (%)

4.5

4.9

4

4

4.2

Consumer price inflation (av; %)

13.3

14.3

10.6

8.1

7

Population ('000)

171

175

178

182

186

Exports of goods fob (US$ m)

10.9

10.9

15.1

12.9

17.4

Imports of goods fob (US$ m)

96.2

115.7

119.1

128.6

145.6

Current-account balance (US$ m)

-55.6

-73.3

-67.8

-82.3

-99.1

Foreign-exchange reserves excl gold (US$ m)

48.2

52.1

51.6

63.8

63.5

Exchange rate (av) Db:US$

18,498.60

17,622.90

19,068.40

18,450.00

18,466.40

[a] Actual.

(c) The Economist Intelligence Unit 2015