Niger’s real GDP growth is expected to rebound to 5.6% in 2021 as the economy recovers from the Covid-19 pandemic. This is forecast by the International Monetary Fund (IMF), which notes that the economic outlook for the current year “remains favorable”, as well as for the medium term.
According to the institution, growth is expected to accelerate in 2022 and reach double-digit levels in 2023, boosted by the operationalization of the new pipeline to Benin. The external current account is expected to deteriorate in the short term due to the implementation of large-scale projects with a high content of imported capital goods and intermediate goods, before improving significantly with oil exports from from 2023.
“Although contained, inflationary pressures are expected to persist in 2021, mainly driven by rising food prices due to supply chain disruptions linked to Covid-19, before easing in recent years. years. The budgetary situation, already under strain in 2020, is expected to deteriorate further in 2021 in the face of significant security and development needs. However, consolidation efforts and the arrival of oil revenues should help bring the deficit down to the regional target of 3% of GDP in the medium term “, also notes the IMF.
Dynamic economy
From 7.2% in 2018 and 5.9% in 2019, Niger’s economic growth rate stood at 1.2% in 2020 under the impact of the crisis. Until then, the country was considered West Africa’s most dynamic economy.
According to the Multiannual Budgetary and Economic Programming Document (DPBEP) presented last July by the government, Niamey expects growth of 5.5% in 2021, 7.1% in 2022, 8.6% in 2023 and by 12.8% in 2024.
