Comoros Economy

Comoros Economy

Subchapters:

  • Basic data
  • Public finances and the state budget
  • Banking system
  • Tax System

Basic data

The Chambers have seen steady economic growth in recent years. As a result of the global pandemic, their GDP fell by 2.1% in 2020, but it grew by the same amount in 2021. The effects of the pandemic in the form of a reduction in trade, tourism and remittances marked the Comoros even before the country recorded the first case of Covid-19 on its territory. The renewal of business activities in 2021 was supported by the growth of the ICT sector and partially tourism. After the pandemic subsides, large infrastructure projects (water and electricity networks, roads) should also be launched. In the case of favorable climatic conditions, it is also possible to expect growth in agriculture. The trade balance will remain at a similar level in the next period, which will be determined by the rise in world food and oil prices, but also by greater demand for agricultural commodities, which are the basis of Comorian exports. Check ebizdir for economical facts of Comoros.

In 2020, agriculture accounted for 26.9% of GDP and employed approximately 80% of people of working age. The main export products include cloves, ylang ylang and vanilla (these account for 33.3% of the country’s total GDP and account for 90% of all exports). Industry accounted for 12.1% of GDP and services for 58.7%. Regarding imports, the Union of Comoros mainly imports petroleum products, automobiles and their spare parts, and rice. The main export destination is France, followed by India and Germany. Imports to the Comoros go mostly from the UAE, France and Pakistan.

Pointer 2019 2020 2021 2022 2023
GDP growth (%) 2 -2.1 2.1 3.2 3.5
GDP/population (USD/PPP) 3,190.00 3,160.00 3,270.00 3,400.00 3,540.0
Inflation (%) 3.7 1 1.2 1.9 2
Unemployment (%) 8.1 9.2 ON ON ON
Export of goods (billion USD) 0.1 0 0 0 0
Import of goods (billion USD) 0.3 0.3 0.4 0.4 0.4
Trade Balance (Billion USD) -0.2 -0.2 -0.3 -0.3 -0.3
Industrial production (% change) ON ON ON ON ON
Population (millions) 0.9 0.9 0.9 0.9 0.9
Competitiveness ON ON ON ON ON
OECD export risk ON ON ON ON ON

Source: EIU, OECD, IMD

Public finance and state budget

Public finance 2021
State budget balance (% of GDP) -2
Public debt (% of GDP) ON
Current account balance (billion USD) 0
Taxes 2022
AFTER 35-50% depending on the amount of income
F.O 0-30%
VAT 0-10%

In 2021, the Union of the Comoros continued the trend of moderate budget deficits (in 2019 it was the consequences of cyclone Kennet and in 2020 and 2021 the consequence of the global pandemic). In the next period, a basically balanced budget can be expected, thanks to the increase in income in connection with economic growth and the cancellation of tax breaks, which were introduced due to the pandemic. In 2020, government spending was concentrated in health care and social programs. In 2021, the trend was similar, supplemented by government investment in infrastructure. In the case of the Comoros, budget deficits are mainly financed by foreign loans.

Banking system

Banque Centrale

Box 405, Moroni

tel.: +264 731002

Banque d’International Des Comoros

Box 175, Moroni 731588

tel.: +264 730243

Tax system

The Comorian tax system is based on the French one. It is complicated and the tax burden on individuals and legal entities is relatively high.

A progressive tax system applies to natural persons. Those with the lowest incomes (up to KMF 150,000) are exempt from income tax. The highest tax burden applies to natural persons with an income of more than million KMF. The tax rate for these persons is set at 30%.

Income tax for legal entities is set at 35%. For companies with a profit above 500 million KMF, this rate is increased to 50%.

The basic VAT rate is 10%. A reduced rate of 5% applies to electricity and telephone and banking services. Water and sewage, domestic air services and tuition fees in private schools are subject to 3% VAT. VAT is zero for basic necessities.

Comoros Economy