Landlocked Chad's economic development suffers from its geographic remoteness, drought, lack of infrastructure, and political turmoil. About 85% of the population depends on agriculture, including the herding of livestock. Of Africa's Francophone countries, Chad benefited least from the 50% devaluation of their currencies in January 1994. Financial aid from the World Bank, the African Development Bank, and other sources is directed largely at the improvement of agriculture, especially livestock production. Because of lack of financing, the development of oil fields near Doba, originally due to finish in 2000, was delayed until 2003.
Economic statistics for Chad must be treated with caution. Significant trade with neighbouring countries, e.g. exports of camels and other livestock to neighbouring states, such as Libya, and imports of manufactured goods, are conducted "informally" and probably not fully recorded.

Macro-economic trend
In 2000, Chad's nominal GDP was estimated at just over $1.43 billion with per capita income at approximately $188. Cotton, cattle and gum arabic are Chad's major exports. More than 80% of the work force is involved in agriculture (subsistence farming, herding, and fishing). Like many other developing countries, Chad has a small formal sector and a large, thriving informal sector. Government statistics indicate the following distribution: Agriculture--38% (farming--23%, livestock--12%, fishing--3%); industry--13%; and services--45%. Chad is highly dependent on foreign assistance. Its principal donors include the European Union, France, and the multilateral lending agencies.

Structure and sectors
Primary markets for Chadian exports include neighboring Cameroon and Nigeria and France, Germany, and Portugal. Until crude oil production began in 2003, cotton played the dominant role, accounting for 40% of total exports in 1999 and remains important. Rehabilitation of Cotontchad, the major cotton company that suffered from a decline in world cotton prices, has been financed by France, the Netherlands, the European Economic Community (EC), and the International Bank for Reconstruction and Development (IBRD). As of January 2002, the parastatal was undergoing privatization.
The other major export is livestock, herded to neighboring countries. Herdsmen in the Sudanic and Sahelian zones raise cattle, sheep, goats, and, among the non-Muslims, a few pigs. In the Saharan region, only camels and a few hardy goats can survive. Chad also sells smoked and dried fish to its neighbors and exports several million dollars worth of gum arabic to Europe and the U.S. each year. Other food crops include pearl millet, sorghum, peanuts, rice, sweet potatoes, manioc, cassava, and yams.

Exports
Chad's economic performance continues to depend on fluctuations in rainfall and in prices of its principal export commodities, especially cotton. Between 1996 and 1998, the Chadian economy averaged 4.7% growth from. However, unfavorable weather conditions contributed to disappointing harvests in 1999-2000, and GDP grew only by 1% and 0.6% respectively. Inflation was estimated 3.7% in 2000 after prices fell by 8% in 1999.
The effects on foreign investment of years of civil war are still felt today, as investors who left Chad between 1979-82 have only recently begun to regain confidence in the country's future. By early 1983, the return of internal security and a successful Geneva donors' conference had prompted a number of international business representatives to make exploratory visits to Chad. By far the most important venture to date is the oil extraction project in southern Chad.
As of 2004 the economy of Chad has been subjected to further pressure due to fleeing refugees from the conflict in the neighbouring Darfur region of Sudan.

Oil production

Chad
Economy of Africa