- By Faridat Salifu
Comoros’ economy grew modestly to 3.4% in 2024, marking a gradual recovery from previous stagnation.
However, the pace of growth remains insufficient to alleviate persistent poverty, inequality, and structural weaknesses.
A new report, the first edition of the Comoros Economic Update, titled An Ocean of Opportunities: Blue Economy as a Driver of Sustainable Growth, underscores the transformative potential of the blue economy for the island nation’s long-term development.
While medium-term projections remain positive, Comoros continues to grapple with significant macroeconomic and structural vulnerabilities that threaten sustained progress.
In 2024, growth was driven largely by household consumption and services, buoyed by rising remittances and reduced inflation.
Modest expansion was also recorded in agriculture and industry. Nonetheless, per capita income remained stagnant, and poverty levels persisted.
The fiscal deficit widened significantly from 1.3% to 3.9% of GDP, mainly due to a surge in externally financed public projects, while revenues remained flat at 16.6% of GDP.
Public debt rose to 36.8% of GDP, prompting international financial institutions to classify Comoros as being at high risk of debt distress.
The country’s banking sector also remains fragile, with high levels of non-performing loans and limited credit access hindering private sector growth.
Remittances, although vital—averaging 11.3% of GDP over the past decade—are not enough to resolve trade imbalances or finance developmental needs.
Looking ahead to 2025–2027, Comoros is expected to maintain steady growth, driven by public infrastructure investment and preparations for the 2027 Indian Ocean Island Games.
Inflation is projected to decline, supported by rice import liberalization and other market reforms.
Still, structural challenges such as import dependency, limited export diversification, and vulnerability to external shocks persist.
WTO accession may open new export markets, particularly for fisheries and agriculture, but could also reduce trade revenues if not accompanied by supportive policy reforms.
To ensure long-term, inclusive growth, Comoros must pursue fiscal reform, bolster private sector competitiveness, and strengthen governance.
Recommended measures include broadening the tax base, modernizing tax collection, and improving public financial management.
Addressing debt sustainability will require enhanced transparency and reliance on concessional financing. Financial reforms to address high non-performing loans and increase access to credit are also vital.
The blue economy represents a particularly promising growth pathway. Despite high per capita fisheries wealth, economic benefits remain limited due to inadequate infrastructure, outdated techniques, and restricted market access.
A robust blue economy strategy centered on marine tourism, aquaculture expansion, port and energy infrastructure improvements, and sustainable fisheries management could raise GDP growth and support the country’s ambition to achieve upper-middle-income status by 2050.
This vision aligns with the Plan Emergent Comores 2030, which emphasizes sustainability and climate resilience.
Enhancing women’s participation, supporting MSMEs, and deploying digital tools for marine spatial planning and resource management will be crucial in realizing this potential.
Through coordinated reforms and strategic investment, Comoros can leverage its ocean resources to fuel inclusive and sustainable economic transformation.