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Overview

Azali Assoumani was re-elected for a third term as President of the Comoros Union in January 2024 following the first round of presidential elections on January 14th, 2024. Elected in 2016, after ten years of absence from the political scene, Azali Assoumani returned and won the last three presidential elections (2016, 2019, 2024). On July 1, 2024, President Assoumani appointed a new cabinet, comprising 15 ministers, two of whom are women, and one leading a new ministry in charge of gender promotion. Parliamentary elections were held in January 2025 to renew the National Assembly for a five-year term. President Azali Assoumani's party, the Convention for the Renewal of the Comoros (CRC), secured an absolute majority, winning 31 out of 33 seats. A 2023 bill passed by 21 deputies increased the number of constituencies from 24 to 33 to enhance representation. Grande Comore now has 16 seats, Anjouan 12, and Moh¨¦li 5. On February 16, 2025, municipal elections were held to renew local councils. The CRC dominated, winning most of the 54 constituencies, including the capital, Moroni.

Economic Overview
In 2024, growth rose to 3.4%, up from 3% in 2023, driven mainly by the services sector, while industry grew at 3.8% but had limited impact due to its small GDP share. Construction benefited from public investments in projects like the Galawa Hotel and El-Maarouf Hospital. Private consumption was supported by lower inflation, which averaged 5%, but a widening trade deficit offset some gains. The fiscal deficit expanded to 3.9% of GDP due to higher spending, with revenues stable at 16.6% of GDP, though corporate and consumption taxes declined and customs revenue improved, underscoring the need to address impending WTO-related customs losses. Public debt rose to 36.8% of GDP but remained sustainable. Domestic credit stayed at 24.4% of GDP, shifting toward public sector borrowing, which rose by 8.2%, while private sector credit growth slowed to 1.6%, and financial sector vulnerabilities persisted due to high nonperforming loans of around 17%. The current account deficit widened to 3.2% of GDP as goods exports fell by 5%, though remittances grew nominally but declined relative to GDP.

Growth is projected to reach 4% in 2027 for only the third time since 2010, driven by strong private consumption as inflation stabilizes at 3% and public investments under Plan Comores Emergent 2030, including preparations for the 2027 Indian Ocean Island Games, which should boost tourism. However, worsening terms of trade could dampen growth, though poverty is expected to decline to 36% from 38%. Hosting the Games presents a tourism opportunity but requires prudent fiscal management to avoid wasteful spending, given limited fiscal space and high debt risks. Reforms to enhance revenue, such as reducing tax exemptions, improving SOE governance, and increasing public investment efficiency, are critical. The current account deficit is set to widen in 2025 due to energy-related imports, 0.3% of GDP for generators to support energy infrastructure, while tourism gains from the Games may be offset by rising goods imports, exacerbating external vulnerabilities. Key risks include SOE contingent liabilities, geopolitical tensions, and climate shocks.

Social Context

Comoros is densely populated, with approximately 465 inhabitants per km2 and 53% of the population under 20 years of age. High population density places intense pressure on natural resources and the environment. The country¡¯s location and topography are among the most climate-vulnerable in the world, and 54.2% of the population lives in at-risk areas. Some 45% of the population live just below the national poverty line. Comoros children can expect to complete 8.4 years of schooling by 18 years of age. Chronic malnutrition leads to stunting in 31 of 100 children. The social safety net system in Comoros is progressing, but its impact is limited due to inadequate coverage.

Last Updated: Apr 09, 2025

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World Bank Office
United Nations Compound
Moroni
Comoros
PO Box 648
+2697732032
For general information and inquiries
Diana Styvanley
External Affairs Officer
+2697732032
For project-related issues and complaints