Boko Haram affect country's economy

September 26, 2015 6:05 AM

Like many Africa oil producers, the impoverished Central African nation has been hit hard by falling crude prices.

Chadian soldiers drive past a signpost painted by Boko Haram in the recently retaken town of Damasak, Nigeria, March 18, 2015. REUTERS/Emmanuel Braun

Chad's GDP will contract by 1 percent this year from 5 percent growth in 2014 due to plunging crude prices and the negative impact of neighbouring Nigeria's Boko Haram Islamist insurgency, the International Monetary Fund (IMF) said on Friday.

Annual average inflation reached 4 percent at the end of August, the IMF said in a statement at the end of a review mission to the Central African nation.

"Chad's overall macroeconomic performance continues to be significantly impacted by the deep decline in oil prices and the deterioration of the security situation," said IMF's Mauricio Villafuerte, who led the mission.

The last year has also seen a sharp increase in the spillover of Boko Haram violence into Niger, Cameroon and Chad, pushing N'Djamena to help spearhead military operations against the insurgents.

"That generates both direct costs from Chad’s key role in maintaining peace and stability in the region, as well as the costs of hosting refugees," Villafuerte said.

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