Chad Economy

March 26, 2010Chadby EconomyWatch Content

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 Chad is a central African nation. It is bordered by Libya, Sudan, Central African (CAR), Cameroon and Nigeria. Due to the landlocked topography and distance from the sea, the country has a large desert area. Thus, Chad is often referred as the “Dead Heart of Africa”. Apart from the desert region in the north, Chad has a savanna region towards the south due to the presence of Lake Chad, the second largest wetland area in Africa. Chad’s economy primarily depends on crude oil export. According to 2009 estimates, the country has a population of approximately 10.3 million. However, a large portion of the population lives below the international poverty line (US$1.25 per day).

 

Chad Economy: GDP

Traditionally, Chad’s economy is agrarian in nature. Since 2000, Chad began to export crude oil, which has become the prime source of revenue for the nation. The 2007-08 global recession had severe impact on the Chadian economy. According to the 2009 estimates available in CIA World Factbook, Chad has an annual GDP of US$15.8 billion. The inflation rate is stable in Chad. In the period between 2003 and 2008, the inflation rate fell from 6% to 4%. However, in the fiscal year 2009-10, the inflation rate surged to over 10.30% due to the rising budget deficit.  

 

Chad Economy: Major Statistics

Here are some major statistics related to the Chadian economic profile:

 

Labor force

4.293 million (2007)

Labor force in agriculture

80%

Budget revenues

$872.5 million (2009 est.)

Budget expenditures

$1.454 billion (2009 est.)

Industrial production growth rate

1.5% (2009 est.)

Current account balance

-$1.843 billion (2009 est.)

Exports

$3.164 billion (2009 est.)

Imports

$2.115 billion (2009 est.)

Foreign exchange reserve

$820 million (2009 est.)

External debt

$1.6 billion (2005)

 

According to the UN Human Development Index, Chad is the fifth poorest country in the world. The political instability of the country is the prime reason for its weak economy. However, with foreign direct investment (FDI) in the oil sector, it is expected that the Chadian economy will become stronger in the near future.

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