São Paulo – Comoros’ economy slowed down in 2024 due to causes like declining exports and imports and low credit lending in the private sector, according to a report released on Thursday (22) by the International Monetary Fund (IMF). IMF officials met with local authorities in Moroni, Comoros, between April 29 and May 13.
According to the IMF officials’ statement, the Comoros authorities are committed to achieving the goals already set with the fund, but various factors contributed to an economic performance below expectations. Among the causes of the slowdown are low exports and imports, tax revenues lower than planned, and challenges in the financial sector.
Transfers of funds and subsidies for project implementation helped offset the weak economic performance and contain the current deficit to 2.2% of gross domestic product. Inflation ended 2024 at 6%, lower than the peak of 8.7% recorded in September. According to the fund, the rise in prices was driven by food costs. The targets set between the IMF and authorities were only partially met.
“The authorities are committed to undertaking corrective actions for the missed targets. Short-term measures to ensure the proper application of the tax laws and the collection of tax arrears will boost revenue collection. Additionally, all external debt service arrears accumulated since the start of the year have been cleared,” the IMF reported.
Even with the economic challenges common to “island economies,” the IMF noted, its officials approved the disbursement of the equivalent of USD 4.7 million under a credit agreement between Comoros and the fund. This disbursement is a portion of a total of USD 23.5 million, but the release of the funds still needs final approval from the IMF.
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Translated by Guilherme Miranda
