Chad: Economic and Political Overview
In this page: Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline | COVID-19 Country Response
For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.
In 2021, Chad saw an economic rebound from the pandemic, with the country recording a GDP growth of 0.9%. However, the continued fallout of the health crisis, as well as Chad's political and security instability, hampered a stronger growth. The country should recovering throughout 2022 and 2023, with growth rates reaching 2.4% and 2.5%, as demand surges. The slight rise in oil price and the start of production at new fields should help the country continue to overcome the impact of the crisis. Gold’s prices are another factor likely to contribute to the good performance of the Chadian economy this year.
In 2021, the government continued implementing a series of fiscal measures put in response to the COVID-19 crisis, which have been effective. IMF has helped Chad through a facility of USD 183 million and a six months alleviation of the debt of the country. In 2021, the debt-to-GDP ratio decreased to 44%, and it should remain stable at 44.3% in 2022 and 42.8% in 2023. As for the country's inflation rate, it stood at 2.6% in 2021, and it is expected to reach 2.8% in 2022 and maintain that rate in 2023. In 2022, the gradual removal of COVID-related spending and the expected increase of oil receipts will boost the government’s revenues. The current account deficit is expected to remain relatively stable, going from 5.2% in 2021 to 4.7% in 2022 and 5.8% in 2023. While export earnings are expected to increase over that period, growth in imports of goods and services to support development in the oil sector should to be quicker.
While it records a high level of schooling, Chad is still dominated by poverty and strong social inequalities. However, in the past few years, the percentage of poor people has reduced, but the crisis the country now experiences has raised the poverty rate (to 39.8% in 2019, according to the World Bank). In 2020, the unemployment rate in the country was at 2.3%.
| Main Indicators | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| GDP (billions USD) | 10.73 | 11.80 | 12.95 | 13.52 | 14.23 |
| GDP (Constant Prices, Annual % Change) | -2.2 | -1.1 | 3.3 | 3.4 | 3.4 |
| GDP per Capita (USD) | 653 | 697 | 743 | 755 | 772 |
| General Government Gross Debt (in % of GDP) | 54.2 | 56.0 | 44.7 | 38.3 | 34.3 |
| Inflation Rate (%) | 4.5 | -0.8 | 4.9 | 3.1 | 3.0 |
| Current Account (billions USD) | -0.81 | -0.54 | 0.11 | -0.32 | -0.66 |
| Current Account (in % of GDP) | -7.6 | -4.5 | 0.8 | -2.4 | -4.7 |
Source: IMF – World Economic Outlook Database , Latest available data
Note: (e) Estimated Data
Agriculture and livestock breeding are important economic activities that employ 75% of the population - most of them are engaged in subsistence farming. Overall, the primary sector accounts for 46.3% of Chad’s GDP (World Bank). Main crops grown are sorghum, millet, and berebere, with minor production of cotton, sugarcane and peanut. A vast part of Chad’s landscape is a desert landscape, and the country’s most fertile croplands (the areas with an average annual rainfall of 800 millimetres or more) are in the Soudanian, which accounts for about 10% of the total land area. The pandemic, coupled with a deterioration of harvests, had a significant impact on agriculture in 2020, with an important loss in income and employment and an increase in food prices as a result of the supply chain disruption. However, 2021 showed signs of recovery in the sector, which should continue in 2022.
The industrial sector contributes 14.2% of GDP and employs 1.8% of the active workforce. The petroleum sector dominates the economic activity – accounting for about 60% of export revenues - and attracts the bulk of foreign direct investments. Processing of cotton and cottonseed oil are other major industries. In an effort to diversify the economy and make it less dependent on global oil prices, the government of Chad has launched its national development plan (PND). However, high costs of energy and transport prevents the emergence of a robust industrial sector in the country.
The services sector is estimated to account for 43.8% of Chad’s GDP and for 23% of total employment. While Chad has great potential for tourism, insecurity and infrastructure deficit have been hampering the sector’s growth. Nevertheless, even though tourism is a relatively minor industry, it was severely impacted by the pandemic. In 2021, however, tourism started to recover, especially in the Zakouma National Park area, which attracts the highest number of visitors in the country.
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
|---|---|---|---|
| Employment By Sector (in % of Total Employment) | 75.1 | 1.9 | 23.1 |
| Value Added (in % of GDP) | 54.0 | 10.9 | 35.7 |
| Value Added (Annual % Change) | 0.8 | 0.3 | -4.4 |
Source: World Bank - Latest available data.
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| Monetary Indicators | 2016 | 2017 | 2018 | 2019 | 2020 |
|---|---|---|---|---|---|
| CFA Franc BEAC (XAF) - Average Annual Exchange Rate For 1 MUR | 16.68 | 16.88 | 16.38 | 16.50 | 14.63 |
Source: World Bank - Latest available data.
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The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.
Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation
See the country risk analysis provided by Coface.
The country is relatively open to foreign trade, which accounted for 72.4% of GDP in 2020 (World Bank, latest available). However, Chad remains rather closed to imports, with duties averaging 15.1%. Chad has adopted the common external tariffs of the Economic and Monetary Community of Central Africa (CEMAC) and the Community of Sahel and Sahara States (CEN-SAD). It has also been a member of the WTO since 1996. Despite free trade between CEMAC countries, trade within the area is low due to non-tariff barriers.
Main export destinations are the United States, India, China, and France and key exports are cotton, livestock, and acacia. Chad imports transport machinery and equipment, industrial products, foodstuffs, and textiles mainly from France, China, Cameroon, and India.
The trade balance is heavily dependent on oil, which reached an average of 89% of total exports in 2018, according to the AfDB. The decline in crude oil prices has severely affected the country’s trade balance. According to the WTO, imports of goods amountede to USD 2.67 billion, while exports reached USD 2.62 in 2020. As a result, Chad's trade balace came to a deficit of USD 520,000.
| Foreign Trade Indicators | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|
| Imports of Goods (million USD) | 1,934 | 2,550 | 2,666 | 2,675 | 2,745 |
| Exports of Goods (million USD) | 1,500 | 3,160 | 3,205 | 2,623 | 2,560 |
| Imports of Services (million USD) | n/a | 1,668 | 1,744 | 1,523 | 2,054 |
| Exports of Services (million USD) | 0 | 271 | 279 | 201 | 223 |
| Imports of Goods and Services (Annual % Change) | -1.3 | 1.4 | 4.0 | 1.8 | 5.1 |
| Exports of Goods and Services (Annual % Change) | 1.3 | 4.6 | 6.0 | 1.1 | -0.4 |
| Imports of Goods and Services (in % of GDP) | 39.7 | 38.0 | 37.8 | 42.0 | 44.2 |
| Exports of Goods and Services (in % of GDP) | 33.9 | 36.2 | 36.7 | 26.7 | 38.8 |
| Foreign Trade (in % of GDP) | 73.6 | 74.2 | 74.6 | 68.7 | 83.0 |
Source: WTO – World Trade Organisation ; World Bank , Latest Available Data
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| 0.2 bn USD of services exported in 2018 | |
|---|---|
| 49.37% | |
| Miscellaneous business,...Miscellaneous business, professional, and technical services | 49.37% |
| 12.72% | |
| Business travelBusiness travel | 11.50% |
| Personal travelPersonal travel | 1.23% |
| OtherOther | 1.21% |
| Health-related expenditureHealth-related expenditure | 0.01% |
| Education-related expenditureEducation-related expenditure | 0.01% |
| 10.85% | |
| ReinsuranceReinsurance | 0.07% |
| 10.17% | |
| Construction abroadConstruction abroad | 10.17% |
| 7.67% | |
| Telecommunications servicesTelecommunications services | 7.67% |
| 5.43% | |
| Air transportAir transport | 4.47% |
| OtherOther | 4.13% |
| FreightFreight | 0.31% |
| PassengerPassenger | 0.04% |
| 3.47% | |
| 0.30% | |
| 0.01% | |
| 0.01% | |
| 1.7 bn USD of services imported in 2018 | |
|---|---|
| 37.13% | |
| Sea transportSea transport | 15.07% |
| FreightFreight | 14.95% |
| OtherOther | 0.12% |
| Air transportAir transport | 10.26% |
| FreightFreight | 7.35% |
| PassengerPassenger | 2.81% |
| OtherOther | 0.11% |
| 26.28% | |
| Auxiliary servicesAuxiliary services | 0.02% |
| 21.02% | |
| Miscellaneous business,...Miscellaneous business, professional, and technical services | 15.03% |
| Research and developmentResearch and development | 5.99% |
| 10.77% | |
| Information servicesInformation services | 10.03% |
| 3.01% | |
| Personal travelPersonal travel | 2.57% |
| OtherOther | 1.11% |
| Education-related expenditureEducation-related expenditure | 1.04% |
| Health-related expenditureHealth-related expenditure | 0.41% |
| Business travelBusiness travel | 0.45% |
| 1.50% | |
| Telecommunications servicesTelecommunications services | 1.49% |
| 0.17% | |
| Construction in the compiling...Construction in the compiling economy | 0.17% |
| 0.13% | |
| n/a% | |
| n/a% | |
Source: United Nations Statistics Division, Latest Available Data
- Rally for Democracy and Progress
- National Rally for Development and Progress
- Federation, Action for the Republic (radical and federalist)
- Chadian Action for Unity and Socialism (Marxist)
- National Union for Democracy and Renewal (socialist)
- Union for Renewal and Democracy
- Action for Renewal of Chad
- People's Movement for Democracy in Chad
- National Democratic and Federal Convention
- National Democratic and Social Convention
- Rally for the Republic - Lingui
- National Rally for Democracy in Chad
- National Union
- Rally of Democratic Forces in Chad
The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.
Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House
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Latest Update: March 2023
