Economics of Democratic Repblic of Congo: 1. The country GDP: does the country p

Question

Economics of Democratic Repblic of Congo: 1. The country GDP: does the country produce a lot of stuff? has the country's GDP been increasing at fast rate? slow rate? Not at all? 2. The country's price level: are things expensive to buy? Has the country's price level been increasing at fast rate? slow rate? Not at all? 3. The country's unemployment rate: what is the job situation in the country? has the country's unemployment rate been increasing at fast rate? slow rate? not at all? 4. What does the country produce, what industries the country's economy? how important is international trade to the country's economy? 5. What is the country's economic system?( capitalist/traditional/socialist/communist/something in between)

Explanation / Answer

The economy of the Democratic Republic of Congo is mainly based on Agriculture and Mining. That is, they are basically dependent on their natural resources; where agriculture accounts for the highest share in GDP estimation followed by their mining industries which include Copper, Diamond, Zinc, Cobalt etc.

According to the official data, the GDP of Congo is rising at a whooping rate of 9.1% according to the 2016 estimates, which is phenomenon given the global slowdown in business and economy. So, the Country's GDP has been rising at a faster rate.

At the same time the inflation rate is not high, which makes the country better in terms of real GDP. The Consumer Price Index according to the recent data amounts to mere 2.10%. The inflation rate did rose from 2% to 2.10% according to the monthly estimates of the inflation data but we could say that the inflation is not a concern for the economy as of now and it is not expensive to buy thing at Congo.

But the Unemployment rate creates a bit concern for the economy which is at 8% as of now. So, the job situatuion in Congo (which mainly accounts for low paid jobs in agriculture and mining industry) is a bit dizzy.

As discussed above, the country is mainly dependent on two sectors, namely, Agriculture in which they mainly produce cash crops like coffee, palm oil, cocoa, rubber, sugar etc and Mining industry which consists of mining of different products as stated above along with the mining products processing industry, consumer products like textiles, processed agriultural products etc.

The country is highly dependent on international trade as they mainly produce the cash crops and also the mining products are high in demand in international market as raw materials and also as intermediate products. The counrty is mainly tied up with China, Belgium, Zambia etc for their international export destination which together accounts about $9,000 billion for the country.

Initially the country started off as a communist economy but with the advent of the Congo wars, the country gradually shifts its position and move towards a mixed economy where both the system of communism and capitalism coexist.

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