DRC lowers economic growth yet again citing low commodity prices
The Democratic Republic of Congo has once again lowered its economic growth due to low commodity prices. The central bank of the DRC decided to lower the country’s 2016 GDP growth estimate. It now anticipates the economy to grow by only 2.5 percent down from a reversal of 4.3 percent. The lowering of the forecast has been attributed to low commodity prices. This latest downgrade is the fourth this year. In August, the country slashed its economic growth forecast once again, still citing the impact of low commodity prices.
In 2015, the country rich in mineral resources recorded a 6.9 percent growth. However, the productions of copper, cobalt and gold have all decreased this year. Commodity prices have plummeted and foreign investors are further likely to be deterred by the country’s election stalemate. The DRC is Africa’s top copper producer and relies on its mining industry for about 95 percent of its exports earnings.