In 2022, Chad experienced unprecedented floods that displaced 1.3m people, about 7 of its population. The natural disaster led to significantly elevated food inflation, with prices rising at a rate of 12.2 in 2022 compared to 5.1 the previous year.
Yet, in the same year, high revenues from the oil sector - which represents around 15 of Chad's GDP and contributes about 40 of government revenues - resulted in a fiscal surplus of 4.5 of GDP and a decrease in the public debt burden.
This situation perhaps encapsulates the contradictions at the heart of Chad's current economy. About 80 of the population depends on subsistence agriculture. But it sits on natural resources that, in theory, could be the basis of strong economic development. It has an estimated 1.5bn barrels of proven oil reserves - producing an average of around 140.000 barrels per day - as well as mineral deposits such as gold, uranium and bauxite.
