Côte d’Ivoire: the IMF plans “the continuation of robust growth” in the medium term The Ivorian economy has a good day ahead of it despite the less favorable context of keeping down cocoa prices. At the end of a stay that began in Abidjan on March 22, Dhaneshwar Ghura, head of a delegation of the IMF, said that “economic activity should remain strong in 2018 and the medium-term prospects project the continuation of ‘robust growth’.
The mission, which was to review the three-year economic and financial program supported by the IMF, provided an overview of national economic news.
In 2017, GDP grew by 7.8%, notwithstanding the fall in cocoa prices and social demands, inflation remained low at around 1%, credit to the economy grew at a steady pace of 13%, 3%, the budget deficit stood at 4.2% of GDP and the external current account deficit stood at 2.1% of GDP, in the wake of the drop in cocoa prices, explained Dhaneshwar Ghura.
“The medium-term outlook is favorable (…), the budget deficit should be maintained at 3.75% of GDP in 2018, in line with the objectives of the program” he continued, welcoming the commitment of authorities to reduce the deficit to 3% in 2019, in line with the WAEMU guidelines.
Mitigate budget risks
However, according to the delegation, Côte d’Ivoire must “mitigate budgetary risks” by continuing the restructuring of the CRS, the troubled national refinery, and state-owned banks, as well as counterbalancing “risks linked in particular to the slower pace of growth. expected revenue mobilization, adverse trade terms and tightening of international financial conditions “. It will be remembered that the authorities had to retract in the face of the outcry raised by the 2018 tax schedule which was supposed to generate CFAF 75.4 billion of additional revenue for public finances.
Satisfecit
Assessing the implementation of the program, the head of the delegation stated that “all the performance criteria and indicative benchmarks, except for one, by the end of December 2017 have been respected and all the structural benchmarks, with the exception of one, have also been implemented, “a situation that contributed to the success of the March Eurobond according to the latter.
The mission also announced that it has reached an agreement with the authorities on the third review of the IMF-supported economic and financial program through agreements concluded under the Extended Credit Facility (ECF) and the Extended Credit Facility. (MEDC), subject to approval by IMF and Board management in June.
“The mission and the authorities have agreed that Côte d’Ivoire’s economic transformation agenda is progressing well. Continued fiscal consolidation, prudent debt and supply-side reforms will support high growth rates. Continued efforts to spread the benefits of growth and reduce youth unemployment will also be an important factor in ensuring the long-term success of government policies, “said Ghura.
