The Ivorian economy continues its growth dynamic

2023-04-27 15:00:00

CAP. Despite a complex political climate, Côte d’Ivoire has come a long way to recover from recent external shocks and rebound economically.

Par Africa Point

The Ivorian economy continues its growth dynamic with a projected GDP growth rate of 7.2% for this year against 6.7% in 2022.
© ISSOUF SANOGO / AFP

Published on 04/27/2023 at 3:00 p.m.

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LIvorian President Alassane Ouattara expects Côte d’Ivoire’s Gross Domestic Product (GDP) to grow by 7.2% in 2023, he announced Tuesday (April 25th) during his annual State of the Nation address. in Abidjan. “For the year 2023, the GDP growth rate is projected at 7.2%,” said the Head of State, adding that “the inflation rate should drop to 3.7%”. Figures that are close to those of the International Monetary Fund, which estimated Ivorian growth at 6.5% for 2023. The institution even judges that inflation was also lower there than in other countries of the region. region, at 5.5% over the past year, and should slow to 4% this year.

When it comes to taking stock, Alassane Ouattara does not hide his satisfaction: GDP grew by 7.4% in 2021 and 6.8% in 2022, the year when inflation reached 5.3%, i.e. “the one of the lowest rates in the world”, according to the Head of State. “After a GDP growth rate of 2% in 2020, a year in which all the economies of the world plunged due to Covid, Côte d’Ivoire was still able to maintain its expansion,” he added. These figures show “the solidity of Côte d’Ivoire”, “one of the locomotives of the sub-region and one of the main showcases of an Africa that is advancing and winning”, he said, adding that its objective was to “create more wealth and jobs”.

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The IMF strongly committed alongside Côte d’Ivoire

Alassane Ouattara recalled in his speech the support of the International Monetary Fund (IMF), through development aid of 3.5 billion dollars announced at the beginning of April. He also highlighted the country’s “moderate” debt, assessed at “55% of GDP”. “The economic outlook is therefore favourable”, he concluded, “even if the government must remain attentive, due to the uncertainties linked to an unstable international situation”. Côte d’Ivoire and the IMF had initially discussed a loan of 2.6 billion dollars, or 300% of the country’s quota at the IMF, which was finally increased to 400%.

While the Ivorian economy has generally resisted the pandemic, it has suffered, like the majority of African countries, from the repercussions of Russia’s invasion of Ukraine and the tightening of monetary policies in advanced countries. Indeed, the war in Ukraine led to a rise in food prices, in response, the government of President Ouattara introduced subsidies to control the prices of fuel, electricity and food products such as flour. , bread, etc. This deprived the administration of the fiscal space it needed to carry out the development projects undertaken.

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A vast program of investments and structural reforms

Côte d’Ivoire’s ‘economic rebound has weakened in the face of negative fallout from Russia’s war in Ukraine and global monetary tightening’. The measures taken to “reduce the pressure on prices, the increase in security spending and the trade imbalance, due to robust domestic demand, have reinforced macroeconomic imbalances”, detailed the institution, pushing the government to ask IMF support. “Indirect and direct subsidies to curb price pressures, increased security spending and deteriorating terms of trade amid robust domestic demand have led to worsening macroeconomic imbalances in 2022.” The IMF assures us that it “fully supports the authorities’ reform program and welcomes their strong commitment to the sustainability of public finances and debt, as well as the development of a more prosperous and more inclusive society”, declared the head of the mission on site, Olaf Unteroberdoerster, quoted in the press release.

Côte d’Ivoire has launched several investment programs, particularly in the key cocoa sector, in order to acquire a processing industry, hitherto mainly carried out outside the country, yet the world’s largest producer. She also wants to improve her agricultural production in order to increase her exports to other African markets.

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