Comoros Economy Facts

by ebizdir · Published January 30, 2023 · Updated February 22, 2023

Economical overview

Lack of important natural resources, a poorly developed transport system, overpopulation and high unemployment have made the Comoros dependent on outside assistance. The situation has not been facilitated by the political turmoil, corruption and inefficiency that prevailed since independence in 1975.

Gross domestic product (GDP) decreased by about half a percent in the 1990s and growth was low during the first decade of the 2000s. In the first half of 2010, growth was commuting between 2 and 4 percent per year. So far, it has only been a few years that the Comoros’ economic growth has been greater than the population growth.

Countryaah.com: Major imports by Comoros, covering a full list of top products imported by the country and trade value for each product category.

Agriculture dominates the economy, both as a share of GDP and in the number of employed. The country is wrestling with large deficits in the state budget and in foreign trade. Imports are many times larger than exports. Almost all rice, which is the main food of the Comoros, is imported like all oil.

The most important source of foreign currency is the money sent home by Comorians who moved abroad, not least to the French island of Mayotte. According to the World Bank, the money sent home in 2012 corresponded to about one fifth of the country’s GDP. The currency of the Comoros, the Comorian franc, is tied to the euro, which has kept inflation down. In 2008–2009, inflation rose to almost 5 percent, partly as a result of high fuel costs, but has subsequently remained at 2-3 percent.

The Comoros meet the World Bank and IMF criteria for a so-called “high-indebted poor country” (HIPC). Nevertheless, the Comoros have long been denied the debt relief that HIPC countries can get, because the relief requires domestic political stability and the economy is in a decent state. Since the IMF in 2004 refused to lend money to the Comoros, the African Development Bank (ADB), together with donors, negotiated a rescue plan in December 2007. One year later, the IMF launched a support package as a first step towards debt relief. In September 2009, the IMF granted the Comoros a three-year aid equivalent to $ 20.6 million, in support of the government’s poverty reduction. According to the IMF, the Comoros had initiated reforms to support the private sector and boost growth. In June 2010, the IMF and the World Bank declared that the Comoros were now ready to be approved for debt relief in accordance with the HIPC criteria. In 2011, the pace of reform stopped, but in December 2012, the IMF gave the Comoros debt relief of $ 176 million. At the end of the same year, the country’s foreign debt was $ 278 million.

Abbreviationfinder.org: Check this abbreviation website to find three letter ISO codes for all countries in the world, including COM which represents the country of Comoros. Check findjobdescriptions to learn more about Comoros.

In January 2014, the government launched a five-year strategy for economic growth and poverty reduction. One goal was to improve the business climate in the country. But despite the amortization of debt and development plans, the Comoros’ economic conditions are so poor that assessors look pessimistically at the country’s ability to consistently achieve economic growth that is higher than population growth.