The economy of the Central African Republic (CAR) stagnated in 2021 compared to 2020. Insecurity and disruptions in supply chains drove inflation above the regional ceiling of 3 percent in 2021. Fiscal pressures mounted in 2021 and led to a deterioration in the fiscal position, lingering debt vulnerabilities. CAR's current account balance deteriorated further in 2021 due to a sharp decline in official transfers. Delays in the global economic recovery and the impact of the war in Ukraine could be detrimental to CAR's economic outlook. In the short term, the proposed road to a robust, resilient, and inclusive recovery could be based on the following four pillars: (i) Promoting peace and security and strengthening social safety net programs to cushion the impact of overlapping crises on the most vulnerable
(ii) Pursuing the vaccination campaign to reduce the risk of new COVID-19 waves and the emergence of new variants remains critical and will require both domestic and global efforts
(iii) Reducing fiscal imbalances by responding to treasury pressures without adding to debt vulnerability
and (iv) Enabling trade and private sector development.