Democratic Republic of the Congo: Staff Report for the 2022 Article IV Consultation, Second Review Under the Extended Credit Facility Arrangement, Request for Modifications of Performance Criteria, and Financing Assurances Review-Press Release; Staff

This paper highlights Democratic Republic of the Congo (DRC) the 2022 Article IV Consultation, Second Review under the Extended Credit Facility (ECF) Arrangement, Request for Modification of Performance Criteria, and Financing Assurances Review. The DRC’s macroeconomic environment has improved since the last Article IV consultation in 2019. The authorities have adopted prudent macroeconomic policies, most visibly by halting central bank financing to the government. Strengthening the monetary and exchange rate policy frameworks will support price stability and external sustainability. Continued efforts to accumulate reserves buffers while enhancing the role of the exchange rate as a shock absorber are paramount to build resilience to external shocks. Advancing structural reforms and strengthening policy frameworks, including in natural wealth management, are key to promoting higher and sustainable inclusive growth, as the global energy transition provides an opportunity for development. Scaling up structural reforms remains critical to promote inclusive growth, including those enhancing governance and enhancing the business climate—both key to support investment, private sector development, economic diversification, and competitiveness.