Comoros: Economic Outline

Economic Indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

The Comorian economy was already weakened by political uncertainty and the passage of cyclone Kenneth when it was hit by the Covid-19 pandemic, with GDP contracting by 0.3% in 2020. After a rebound in 2021 (+2.2%), the country’s economy continued expanding in 2022, when growth reached an estimated 3% of GDP with services and agriculture as the main engines, buoyed by the rise in prices of the main export products (especially cloves). The IMF expects Comoros’ economy to expand by 3.4% this year and 3.9% in 2024, although uncertainty persists at the global level.

Public finances have been under pressure in recent years, as since the start of the pandemic remittances slowed, tourism fell and liquidity pressures increased. The IMF approved USD 12 million in emergency assistance to help address the pandemic and the country also benefited from IMF debt service relief under the Catastrophe Containment and Relief Trust. The African Development Bank forecasted a budget deficit of 5.1% of GDP in 2022, reflecting the increase in public spending to support economic recovery. Similarly, the debt-to-GDP ratio has been following an upward trend in recent years: it was estimated at 34.5% in 2022 (from 26% one year earlier), and the IMF expects it to increase further, to 38.2% in 2023 and 39.7% the following year. The risk of debt distress is increasing because of the large volume of non-concessional loans (AfDB). After experiencing deflation in 2021, the country’s inflation rate spiked in 2022, reaching an average of 11.4% (with the price of some basic goods increasing at an even higher rate, e.g. 31% for rice). According to the IMF, inflation should ease to 8.4% this year, before it returns to a normal level in 2024 (1.2%). To tackle economic fragility, the government’s top priority is to raise fiscal revenue to support investment in human and physical capital and enhance debt sustainability. The authorities also aim to strengthen the quality of spending, public financial management, State-Owned Enterprises (SOE) oversight, and the financial sector. To address institutional fragility, the authorities aim to enhance governance (IMF). Some of Comoros' biggest challenges include weak institutional capacities, a lack of basic infrastructure, heavy dependence on external aid, high exposure to threats related to the over-exploitation of natural resources (deforestation, land degradation, groundwater pollution, and coastal erosion), corruption and an inefficient judicial system that is vulnerable to political interference. Furthermore, it has to be noted that – due to the country’s geography - the agriculture and biodiversity sectors are the most vulnerable to climate change.

With 45% of the population living below the poverty line, Comoros is one of the poorest countries in the world. The unemployment rate stands around 9% (World Bank, latest data available) and general under-employment is the norm, with a large part of the population working in the primary sector. The country’s GDP per capita (PPP) was estimated at USD 3,364 by the IMF in 2022.

Monetary Indicators	2016	2017	2018	2019	2020
Comoro Franc (KMF) - Average Annual Exchange Rate For 1 GHS	111.47	100.35	90.85	84.52	76.97

Source: World Bank - Latest available data.

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Latest Update: September 2023