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 Economy of Comoros

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kosovohp
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PostSubject: Economy of Comoros   Thu Nov 18, 2010 1:55 am

Comoros is one of the world's poorest countries. Economic growth and poverty reduction are major priorities for the government. With a rate of 14.3%, unemployment is considered very high. Agriculture, including fishing, hunting, and forestry, is the leading sector of the economy, and 38.4% of the working population is employed in the primary sector. High population densities, as much as 1000 per square kilometer in the densest agricultural zones, for what is still a mostly rural, agricultural economy may lead to an environmental crisis in the near future, especially considering the high rate of population growth. The Comoros' real GDP growth was a low 1.9% in 2004 and real GDP per capita was continuing declining annually in 2004. These declines are explained by factors including declining investment, drops in consumption, rising inflation, and an increase in trade imbalance due in part to lowered cash crop prices, especially vanilla.[43]

Comoros has an inadequate transportation system, a young and rapidly increasing population, and few natural resources. The low educational level of the labor force contributes to a subsistence level of economic activity, high unemployment, and a heavy dependence on foreign grants and technical assistance. Agriculture contributes 40% to GDP, employs 80% of the labor force, and provides most of the exports. Comoros is the world's largest producer of ylang-ylang, and a large producer of vanilla.[44]

The government is struggling to upgrade education and technical training, to privatize commercial and industrial enterprises, to improve health services, to diversify exports, to promote tourism, and to reduce the high population growth rate.[citation needed]

The Comoros claims the Banc du Geyser and the Glorioso Islands as part of its exclusive economic zone.[citation needed]

Comoros is a member of the Organization for the Harmonization of Business Law in Africa (OHADA

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