Flag: four equal horizontal bands of blue (top), white, green, and yellow with a vertical red band in center; there is a yellow five-pointed star on the hoist side of the blue band
Economy ———-
Economic overview: Subsistence agriculture, together with forestry, remains the backbone of the economy of the Central African Republic (CAR), with more than 70% of the population living in outlying areas. The agricultural sector generates half of GDP. Timber has accounted for about 13% of export earnings and the diamond industry for nearly 80%. Important constraints to economic development include the CAR's landlocked position, a poor transportation system, a largely unskilled work force, and a legacy of misdirected macroeconomic policies. A major plus is the large forest reserves, which the government is moving to protect from overexploitation. The 50% devaluation of the currencies of 14 Francophone African nations on 12 January 1994 had mixed effects on the CAR's economy. While diamond, timber, coffee, and cotton exports increased - leading GDP to increase by 5.5% - inflation rose to 45%, fueled by the rising prices of imports on which the economy depends; inflation dropped back rapidly in 1995. The CAR's poor resource base and primitive infrastructure will keep it dependent on multilateral donors and France for the foreseeable future.
GDP: purchasing power parity - $2.5 billion (1995 est.)
GDP real growth rate: 4.1% (1995 est.)
GDP per capita: $800 (1995 est.)
GDP composition by sector: agriculture: 50% industry: 14% services: 36% (1993)
Inflation rate (consumer prices): 45% (1994 est.)
Labor force: 775,413 (1986 est.)
by occupation: agriculture 85%, commerce and services 9%, industry
3%, government 3%
note: about 64,000 salaried workers (1985)
Unemployment rate: NA%