Comoros Economic Update : Making Remittances Work

Overview & Synopsis

2025 was a strong year for Comoros, with growth reaching its fastest pace in several years, inflation falling sharply, and a broad-based expansion across all sectors of the economy. Real GDP growth accelerated from 3.3 to 3.8 percent in 2025, the strongest performance since before the pandemic, driven by private consumption, a resilient services sector, and a significant scaling up of public investment ahead of the 2027 Indian Ocean Island Games. All three sectors of the economy expanded above 3.5 percent, a rare achievement for an economy that has averaged 2.6 percent growth over four decades. Inflation fell sharply to 3.3 percent, the lowest level since before the 2022 commodity shock, providing meaningful relief to households after three years of elevated prices. Public debt continued its downward trajectory, falling to 27.7 percent of GDP from 30.3 percent the previous year. Private sector credit expanded by 14.7 percent, recovering strongly after the slowdown of 2024. These are genuine achievements and they provide a stronger foundation than Comoros has had in some time. Sustaining this momentum will require continued policy effort, particularly as the external environment has become considerably more challenging since the start of 2026.