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 Economy of Comoros

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kosovohp
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PostSubject: Economy of Comoros   Sat 18 Dec 2010, 07:00

Comoros is one of the world's poorest countries. Economic growth and poverty reduction are major priorities for the government. With a rate of 14.3%, unemployment is considered very high. Agriculture, including fishing, hunting, and forestry, is the leading sector of the economy, and 38.4% of the working population is employed in the primary sector. High population densities, as much as 1000 per square kilometer in the densest agricultural zones, for what is still a mostly rural, agricultural economy may lead to an environmental crisis in the near future, especially considering the high rate of population growth. The Comoros' real GDP growth was a low 1.9% in 2004 and real GDP per capita was continuing declining annually in 2004. These declines are explained by factors including declining investment, drops in consumption, rising inflation, and an increase in trade imbalance due in part to lowered cash crop prices, especially vanilla.[43]

Fiscal policy is constrained by erratic fiscal revenues, a bloated civil service wage bill, and an external debt that is far above the HIPC threshold. Membership in the franc zone, the main anchor of stability, has nevertheless helped contain pressures on domestic prices.[44]'


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