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AIF allocative inefficiency factor CART classification and regression tree ENEMPSI Enquête nationale sur l'emploi et le secteur informel (National employment and informal sector survey) ENSOMD Enquête Nationale sur les Objectifs Millenaire du Développement (National Survey on the Millennium Development Goals) EPM Enquête Périodique auprès des Ménages (Periodic Household Survey) FAOSTAT Food and Agriculture Statistics HH Household INSTAT Institut nationale de la statistique.

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Chapter I-Country Context: Macroeconomic Performance and Governance Environment Key Messages  Economic growth has followed a positive trend since the restoration of political stability, but at a slow pace, and GDP growth was lower than the Sub-Saharan African average and that of many regional peers;  Economic growth is driven by services, followed by agriculture on the supply side, and consumption on the demand side. The development of the industry was held back by structural constraints;  Despite some progress in governance, Comoros continues to trail behind its sub-Saharan and international peers, particularly in terms of transparency and accountability of the public sector.