The IMF estimated that real GDP was flat in FY 2003 and projected 1% real GDP growth for FY 2004. However, GDP per capita – amounting to $425 in FY 2002 – will continue to decline as population growth is estimated at 1.3% p.a. While implementation of governance reforms and peaceful resolution of the political stalemate are key to long-term growth, external support remains critical in avoiding economic collapse. The major element is foreign remittances, reported as $931 million in 2002, primarily from the U.S. Foreign assistance, meanwhile, was $130 million in FY 2002. Overall foreign assistance levels have declined since FY 1995, the year elected government was restored to power under a United Nations mandate, when the international community provided over $600 million in aid.
tHe imf esTimatEd thaT REal Gdp WAs flaT in fy 2003 and projected 1% Real Gdp GrOwtH for FY 2004. howeveR, gDp pER capItA – amountINg TO $425 in Fy 2002 – WIll coNTiNUE tO deCLINe as PopulAtion gRowth iS EStimated At 1.3% p.a. wHile IMplemEnTAtIOn of goVerNance reFormS and PEacEfuL reSoluTiOn Of the poliTiCaL staleMAtE aRE keY to LoNG-term grOwTh, EXterNaL SuppoRt reMAins CritiCAL in avoIding economic collapsE. the mAjor elemEnt Is forEigN remIttaNceS, rEPOrted As $931 mIllion iN 2002, pRImaRILy FroM THe u.S. ForEIgn AssistanCe, meaNwhilE, waS $130 miLlion In fY 2002. oVERAlL ForeIGn assisTAncE Levels hAvE DECliNED Since fy 1995, the year eLECteD govErnmeNt wAs restorED TO POwer unDeR a UNitED nATIoNs MandaTe, wheN THe INTernATional comMUnitY prOvided over $600 mIlLiOn In aid.