Chad Economic Forecast

The economy of Chad depends primarily of its agricultural, agrarian, farming, and fisheries sectors. This economy experienced growth thanks to an increase of Foreign Direct Investment or FDI projects, as well as a growing oil and gas sector. While improvement has been seen since 2000, Chad had been forced to face issues because of the high cost of energy, along with the country having a long history of being instable.

The economy of Chad depends primarily of its agricultural, agrarian, farming, and fisheries sectors. This economy experienced growth thanks to an increase of Foreign Direct Investment or FDI projects, as well as a growing oil and gas sector. While improvement has been seen since 2000, Chad had been forced to face issues because of the high cost of energy, along with the country having a long history of being instable. To fight prices of oil and gas, an effort led by two American organizations invested close to $4 billion US dollars to help develop national reserves of oil and gas, estimated to produce one billion barrels in the southern region of Chad. By 2003, the production of both oil and gas became a reality. Then, several companies from China began to explore possibilities to build a refinery. With this along with US efforts, Chad started seeing a production of oil and gas national reserves of 1.5 billion barrels and by 2004, exportation began. Chad then saw stabilization of inflation but by the end of 2009, the rising budget deficit pushed inflation to 10.30%.

Chad GDP Forecast

For a long time, this central African nation had an economy that depended largely on agrarian but when exportation of oil and gas began, it quickly became the number one source of revenue. Bordering Sudan, Central African, Cameroon, Nigeria, and Libya, Chad has faced challenges for the Gross Domestic Product or GDP because of its topography, as well as far distance from the sea. When looking at the Chad GDP (Gross Domestic Product, Current Prices, US Dollar) for 2008, numbers were at $8.39 billion in US dollars but from that time to 2009, a reduction of 18.31% was experienced. Then by the close of 2009, the GDP had dropped to $6.854 billion, putting Chad in the number 131 position for world rankings. In looking at 2010, the current forecast by experts is that Chad’s GDP will see at 16.40% increase, putting numbers at $7.98 billion in US dollars. For the future, forecasters have stretched out to 2015, predicting that the country’s GDP will be at $10.088 billion. All the values that forecasters used were based on national currency and exchange rate projection that was provided by economists of the country.

Chad Unemployment Forecast

Regarding the Chad unemployment rate, the most recent report shows that approximately 10.3 million people live in this country. Unfortunately, a huge portion of the Chad population is still living below the international poverty line, which is based on $1.25 a day in US dollars. Of the 10.3 million people, it is estimated that less than 5 million work and of those, most are involved with the agriculture sector. However, with natural oil and gas being exported and becoming the main income for Chad, it is expected that unemployment will improve within the next few years.

Chad Inflation Rate Forecast

To determine the Chad Inflation Rate, data used is for averages for that particular year and not data for end-of-period. For starters, numbers for 2008 were at 8.34% for change of average consumer pricing but by the end of 2009, an increase of 21.18% was seen putting year-end numbers at 10.103%. With that, Chad was listed as number 27 for world rankings. Using historical data, the experts state that for 2010, the country’s GDP will be around 6.03%, which is a reduction by 40.36% but by 2015, it is expected that numbers will land around 3.025%, a significant increase.

Chad Current Account Balance Forecast

For the Chad Current Account Balance, 2009 was at a negative $2.23 billion in US dollars, which was an increase of 93.74% over 2008, which closed at a negative $1.15 billion. Using all transactions except capital and financial items, forecasters expect that the numbers for 2010 will be at a negative $2.37 billion, which is an increase of 6.32% over the prior year. Then looking out to 2015, the official forecast is for a negative $0.751 billion, again in US dollars.