The Central African Republic is one of the most underdeveloped areas in Africa. Growth of the export economy is hindered by the difficulty of transporting goods to a seaport. Some 80 percent of the population earns its livelihood by farming, fishing, or working in forestry. The agricultural output is fairly evenly balanced between subsistence and export crops. The principal sources of revenue are diamonds, coffee, tobacco, cotton, and timber exports. The national budget in 1991 showed revenues at $175 million and expenditures at $312 million.

Agriculture is the largest sector and the basis of the Central African economy, contributing half of the gross domestic product (GDP) and accounting for nearly four-fifths of the workforce. International (mostly French) capital dominates the economy, although since independence the Central African Republic has tried to attract capital and development monies from other countries, including Libya, Taiwan, China, Germany, and Japan. Nevertheless, French private and public investment has remained prominent.

Subsistence agriculture, together with forestry, remains the backbone of the economy of the Central African Republic (CAR), with more than 70% of the population living in outlying areas. The agricultural sector generates half of GDP. Timber has accounted for about 16% of export earnings and the diamond industry for nearly 54%. Important constraints to economic development include the CAR's landlocked position, a poor transportation system, a largely unskilled work force, and a legacy of misdirected macroeconomic policies. The 50% devaluation of the currencies of 14 Francophone African nations on 12 January 1994 had mixed effects on the CAR's economy. Diamond, timber, coffee, and cotton exports increased, leading an estimated rise of GDP of 7% in 1994 and nearly 5% in 1995. Military rebellions and social unrest in 1996 were accompanied by widespread destruction of property and a drop in GDP of 2%. The IMF approved an Extended Structure Adjustment Facility in 1998 and the World Bank extended further credits in 1999 and approved a $10 million loan in early 2001. The government has set targets of 3.5% GDP growth in 2001 and 2002. As of January 2001, many civil servants were owed as much as 30 months pay, leading them to go on strike and further damaging the economy.