2013-01-01 00:01:53 - Democratic Republic of the Congo Business Forecast Report Q4 2012 - a new country guide report on companiesandmarkets.com
We expect the Democratic Republic of the Congo (DRC) to experience relatively robust growth over the duration of our 2012-2016 forecast period. This is primarily due to the expansion of the mining sector. Domestic consumption will also increase, though it will shrink as a portion of GDP. With its weak infrastructure, poor governance and widespread corruption, the DRC is and will remain one of the most difficult places to do business. We believe that the central government will continue to attempt to make reforms, but that the situation on the ground is unlikely to change dramatically. Security risks are likely to remain concentrated in the east, and pose a relatively minor risk to other regions.
Major Forecast Changes
We have downgraded
our real GDP growth forecast for 2012 from 6.8% to 6.0% on the back of new export figures and rising insecurity in North Kivu. New data indicate that the DRC´s current account deficit was larger than we believed in 2010 and 2011. This deficit will slowly narrow, but we do not anticipate a surplus within our forecast period.
Key Risks To Outlook
Dependence on the copper sector makes the DRC highly vulnerable to market corrections in the price of the metal, which is itself highly dependent on Chinese demand. BMI is predicting an economic slowdown in China this year, but a faster-than-expected deceleration would cause us to alter our forecast While we believe that the security crisis in North Kivu is likely to remain contained, the government´s inability to respond effectively to a relatively minor rebellion is reducing confidence in the state´s ability to assure stability across the country.
Click for report details: www.companiesandmarkets.com/Market/All-Sectors/Country-Guide/Dem ..
Browse all All Sectors Country Guide Reports www.companiesandmarkets.com/Market/All-Sectors/Country-Guide?aCo ..
Browse all All Sectors Company Profile Reports www.companiesandmarkets.com/Market/All-Sectors/Company-Profile?a ..
Browse all Latest Country Guide Reports www.companiesandmarkets.com/Market/All/Country-Guide?aCode=f3fb3 ..
Companiesandmarkets.com is a leading online business information aggregator with over 300,000 market reports and company profiles available to our clients. Our extensive range of reports are sourced from the leading publishers of business information and provide clients with the widest range of information available. In terms of company profiles, Companiesandmarkets.comâs online database allows clients access to market and corporate information to over 100,000 different companies. We provide clients with a fully indexed database of information where clients can find specific market reports on their niche industry sectors of interest.