Central African Republic's economy has contracted 14 percent in 2013, according to the Bank of Central African States (BEAC).
The conclusion came at a meeting of BEAC's monetary policy committee held on Friday in the Cameroonian capital Yaounde.
The shrinkage was attributed to the political turmoil early in the year in the country, a member of the Central African Economic and Monetary Community (CEMAC).
"Central African Republic is a country in recession," the BEAC governor who also heads the monetary policy committee, Lucas Abaga Nchama, told reporters.
He said the country's only hope is successfully organizing the forthcoming presidential and legislative elections to restore normalcy.
The fall of the regime of ex-president Francois Bozize after three months of clashes and the takeover of power by Seleka rebels led by Michel Djotodia on March 24 plunged Central African Republic in chaos and insecurity.
The country has returned to calm with the help of the Central African Multinational Force (FOMAC) deployed by the Economic Community of Central African States and French forces.
The BEAC governor said the internal conflict in Central African Republic had also impacts on economic activities in other member countries of the community such as Cameroon, the Republic of Congo, Gabon, Equatorial Guinea and Chad.
After his election as the interim president by the national transition council in early April, Djotodia vowed to respect the recommendations of ECCAS, by holding democratic elections of the new president and parliament at the end of a 18-month transition period.