Union of the Comoros: Fourth Review under the Extended Credit Facility Arrangement and Request for Modifications of Performance Criteria and Waivers of Nonobservance of Performance Criteria-Press Release; Staff Report; and Statement by the Executive D

Legislative elections in January 2025 widened the ruling party’s majority. Economic activity softened during 2024, but with signs of year-end recovery that have continued in the first months of 2025. Real GDP growth in 2024 is estimated at 3.3 percent. Inflation has been persistent, averaging 5 percent in 2024, and reaching 7.3 percent (y/y) in March 2025, reflecting elevated food prices. Domestic credit growth accelerated to 9.6 percent (y/y) in March 2025, driven by a sustained increase in credit to the government and emerging recovery in private sector credit supported by renewed demand from importers and improving prospects for key exporters. Severe weather events, including Cyclone Chido in December, as well as turnover in revenue administration leadership weighed on fiscal performance. The external position, however, remains stable, with continued reserves accumulation equivalent to 7.4 months of prospective imports as at end-December 2024.