Congo growth forecast slips to 9.2 %: Central Bank - CNBC Africa

Congo growth forecast slips to 9.2 %: Central Bank

Special Report

by Reuters 0

Congo growth forecast slips to 9.2 %: Central Bank. PHOTOS: Getty Images

Democratic Republic of Congo's Central Bank has cut its 2015 economic growth forecast to 9.2 per cent, from an earlier prediction of 10.3 percent, it said on its website.

Congo, which saw copper output top 1 million of tonnes for the first time last year and vies with Zambia to be Africa's top producer of the metal, registered economic growth of 9.5 per cent in 2014, according to the government.

The Bank did not state a reason for the expected slowdown. However, analysts have cited falling copper prices and political uncertainty as potential drags on one of the world's fastest-growing economies.

World copper prices hit a 5-1/2 year low in January. Three-month copper on the London Metal Exchange closed up 0.2 percent at 5,948 US dollars a tonne on Monday.

Investors are weighing political risks in the country ahead of local, regional and national elections scheduled for late 2015 and 2016. Violent anti-government protests in January in several major cities killed at least 40 people.

Consumer price inflation for the month of May stood at 0.66 per cent, well below an annual target of 3.5 per cent.

The International Monetary Fund forecast Congo's 2015 growth at 9.2 per cent last week, calling the medium-term outlook promising.