Comoros

Azali Assoumani was re-elected for a third term as President of the Comoros Union in January 2024 following the first round of presidential elections. On July 1, 2024, he appointed a new cabinet of 15 ministers, including two women, and a new ministry in charge of gender promotion. Parliamentary elections in January 2025 renewed the National Assembly for a five-year term, with President Azali Assoumani's party, the Convention for the Renewal of the Comoros (CRC), securing an absolute majority. On February 16, 2025, municipal elections were held and the CRC won the majority of the constituencies, including the capital, Moroni.

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Comoros' economy gained momentum in 2025, with real GDP growth estimated at 3.8%, up from 3.3% in 2024, reflecting broad-based expansion across all sectors. Industry was the standout performer, growing by 5.3%, driven by construction linked to the Galawa Hotel, El-Maarouf Hospital, and infrastructure for the 2027 Indian Ocean Island Games. Agriculture grew by 3.5%, supported by a recovery in ylang-ylang production. On the demand side, private consumption remained the main growth driver, underpinned by declining inflation and a 5.6% rise in remittances.

Inflation eased from 5% in 2024 to 3.3% in 2025, reflecting lower global commodity prices. Externally, the current account deficit narrowed to 1.8% of GDP in 2025, driven by a one-off export surge and lower energy import costs.

Fiscal pressures increased modestly, with the deficit widening from 2.1% of GDP in 2024 to 2.4% in 2025. This reflected a sharp rise in Games-related capital expenditure, from 5.1% to 6.8% of GDP, which more than offset consolidation in current spending, reduced to 11.1% of GDP. Tax revenues improved to 8% of GDP, up from 7.3% in 2024, largely due to one-off arrears collections, while grants remained a key financing source at around 6% of GDP. Public debt reached 25.2% of GDP in 2025, and Comoros remains at high risk of debt distress under the January 2026 IMF-World Bank Debt Sustainability Analysis.

Looking ahead, growth is projected to reach 4.3% by 2027, driven mainly by the Indian Ocean Island Games. However, higher investment and import needs are expected to widen the current account deficit to 3.4% of GDP by 2027. Private consumption should remain resilient despite a temporary rise in inflation to 4.3% in 2026, with price pressures expected to ease to 2.2% by 2028. Key downside risks include limited access to private sector credit, high non-performing loans, and persistent exposure to climate shocks. Poverty is expected to decline to 43.3% by 2027, with inflation converging toward 3%.

The fiscal deficit is projected to widen slightly to 3.9% of GDP in 2025. Tax revenues dropped by 12% by mid-2025 due to weak customs arrears and private sector resistance. Grants are expected at 6.9% of GDP. Public debt is projected to increase from 33.7 to 36.5%. The government completed the fourth review of the IMF-supported program in June 2025, marking the second consecutive year of fiscal consolidation.

Medium-term growth will be supported by the 2027 Indian Ocean Games, investments under Plan Comores Emergent 2030, resilient private consumption, and an improving business climate, including better credit access and infrastructure. Poverty is expected to decline to 43.3% by 2027, with inflation converging toward 3%.

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Comoros faces persistent structural challenges, shaped by its geographic isolation, limited domestic market size, and institutional capacity constraints. These factors have contributed to modest economic growth, averaging 2.6% over the past four decades. Despite these challenges, Comoros’ stable growth and high remittances in recent years contributed to poverty reduction, from 25.9%of the population in 2020 to 18%in 2024 ($4.20/day, 2021 PPP). Nevertheless, recent progress in poverty reduction has been concentrated on the island of Ngazidja, highlighting the need for inclusive and targeted development efforts.

The Comorian economy remains largely driven by remittances and domestic consumption. Private sector investment faces structural constraints, including limited financial intermediation and elevated credit risks. State-owned enterprises dominate key sectors, which can constrain market competition and contribute to fiscal pressures. Strengthening human capital remains a priority, as access to quality education, healthcare, and social protection services is still limited for many.

Comoros remains highly exposed to climate-related risks, as illustrated by the impact of Cyclone Kenneth in 2019, which caused damages equivalent to 14% of GDP and affected over 40% of the population. Poor infrastructure, particularly in coastal and urban areas, exacerbates the impact of natural disasters. Constraints in governance and public financial management, coupled with low domestic revenue mobilization, continue to narrow the fiscal space available for productive investments. To escape the low-growth trap, Comoros would benefit from the implementation of bold and strategic reforms, including strengthening governance, enhancing climate resilience, expanding critical infrastructure, boosting agricultural productivity, fostering private sector development to stimulate job creation, and investing in human capital to support inclusive and sustainable growth.

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The World Bank Group’s engagement in Comoros is guided by  the Country Partnership Framework (CPF) for 2020-2025, developed in consultation with the government, civil society, private sector, women and youth associations, and representatives from across the islands. Aligned with the National Plan for Emerging Comoros (2020-2030), the CPF’s focus is on four strategic objectives: building human capital, supporting disaster recovery and resilience, improving the business environment and governance, and enhancing connectivity.

The World Bank’s engagement in Comoros has helped advance key national priorities, including economic and fiscal reforms, improved healthcare quality, reduced chronic malnutrition, increased access to energy, and strengthened national connectivity. The World Bank is financing 13 projects in Comoros totaling $356.72 million, including four regional operations. The portfolio spans health, social protection, education, disaster recovery, energy, transport, water, agriculture, climate resilience, financial inclusion, and statistical development. The World Bank has also supported government responses to major crises, including Cyclone Kenneth (2019), the COVID-19 pandemic, and the war in Ukraine.

A new World Bank Group CPF will be prepared this fiscal year to guide engagement over the next five years, with emphasis on supporting economy-wide enablers (macro stability, human capital, access to energy, water and sanitation) and high-potential employment sectors such as agribusiness, blue economy, and tourism to boost job creation and economic transformation in Comoros.

Partners

The World Bank is working in close cooperation with France, the European Union, the International Monetary Fund, various UN agencies, the Islamic Development Bank, the African Development Bank, and the OPEC Fund to harmonize donor efforts in Comoros.

The World Bank’s engagement in Comoros has helped advance key national priorities, including economic and fiscal reforms, improved healthcare quality, reduced chronic malnutrition, increased access to energy, and strengthened national connectivity. The World Bank is financing 14 projects in Comoros totaling $375 million, including five regional operations. The portfolio spans health, social protection, education, disaster recovery, energy, transport, water, agriculture, climate resilience, financial inclusion, and statistical development. The World Bank has also supported government responses to major crises, including Cyclone Kenneth (2019), the COVID-19 pandemic, and the war in Ukraine.

A new World Bank Group CPF will be prepared this fiscal year to guide engagement over the next ten years, with emphasis on supporting economy-wide enablers (macro stability, human capital, access to energy, water and sanitation) and high-potential employment sectors such as agribusiness, blue economy, and tourism to boost job creation and economic transformation in Comoros.

Partners

The World Bank is working in close cooperation with France, the European Union, the International Monetary Fund, various UN agencies, the Islamic Development Bank, the African Development Bank, and the OPEC Fund to harmonize donor efforts in Comoros.

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Strengthening adaptive social protection systems

The Shock-Responsive and Resilient Safety Net Project is strengthening Comoros’ social protection system to better protect vulnerable households from shocks while building long-term resilience to climate, economic, and social risks. The project supports 122 villages in food-insecure areas and helps improve income opportunities for over 19,000 households. By strengthening service delivery systems, establishing national social registry, enhancing government crisis response capacity, the project contributes to improved household food security and greater resilience to future shocks.

Strengthening Health Systems

The COVID-19 Vaccine and Health System Strengthening Project enhanced emergency response capacity, notably during the cholera outbreak, by supporting surveillance, case management, and vaccination of 53% of the population. It also upgraded cold chain logistics, rehabilitated 30 health facilities and solar-powered warehouses.

Strengthening Disaster Preparedness and Resilience

The Post-Kenneth Recovery and Resilience Project is strengthening disaster preparedness through cyclone-resilient housing, upgraded roads, coastal protection, and community infrastructure that support local resilience and job creation. The REPAIR Program enabled rapid financial support following Cyclone Chido, while the Crisis Emergency Response Project allowed for fast restoration of essential services.

Strengthening Water Access

The National Water Resilience Project addresses critical supply challenges in Moroni through infrastructure upgrades, diversified water sources, and governance reforms. Results include water delivery to El Maarouf hospital and groundwork for future island-wide investments. In collaboration with the Regional Climate Resilience Project, these efforts are complemented by climate-resilient measures, including early warning systems, solar-powered pumps, two additional 2,500 m³ water reservoirs, and new water sources for Moroni.

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