The International Monetary Fund (IMF) has reported that Comoros faced significant economic challenges in 2024, citing falling exports and imports, as well as limited credit availability in the private sector, as key factors behind the country’s sluggish performance.
In a statement following a recent mission to Moroni between April 29 and May 13, IMF officials said the Arab-African island nation’s economic activity declined more than expected. Contributing factors included weak trade flows, underperforming tax revenues, and difficulties in the financial sector.
Despite the slowdown, external remittances and project-related subsidies helped stabilize the economy, keeping the current account deficit at 2.2% of GDP. Inflation fell to 6% by the end of 2024, down from a peak of 8.7% in September, largely driven by food price increases.
The IMF noted that Comorian authorities remain committed to reform goals agreed with the fund, although only some of the set targets were met. In response, the government has pledged to implement corrective measures, including better enforcement of tax laws and collection of overdue payments. All outstanding external debt service payments since early 2024 have reportedly been cleared.
Acknowledging the structural hurdles common to small island economies, the IMF announced the approval of a \$4.7 million disbursement to Comoros as part of a larger \$23.5 million credit program. The release of funds is pending final approval from the IMF’s executive board.