IMF Executive Board Concludes 2022 Article IV Consultation with Côte d’Ivoire

The Executive Board of the International Monetary Fund (IMF) has concluded the Article IV consultation with Côte d’Ivoire and endorsed the staff appraisal without a meeting on a lapse-of-time basis.

Supported by solid macroeconomic stability, the IMF said the Ivorian economy proved resilient to the COVID-19 pandemic thanks to the authorities’ effective policy response. COVID-related fatalities remain at low levels by international standards. Vaccination efforts continue and about 70 percent of the target population has already received a first dose.

The economy recovered strongly in 2021 , with growth estimated at 7%, from 2% in 2020, while annual inflation rose to 4.2% due to external and supply shocks. The overall fiscal deficit reached 5.1% of GDP, lower than anticipated, mainly due to improvements in customs collection and tax administration which offset higher security spending.

The deterioration in the external environment linked to the war in Ukraine and regional security challenges are expected to weigh on the macroeconomic outlook in 2022.

The IMF staff forecasts growth to slow down to 6% this year due to subdued global demand, worsened terms of trade, and increased uncertainty, while inflation is expected to increase further to about 5½ percent.

The Ivorian authorities took several temporary measures to contain the impact of the war in Ukraine, such as introducing price ceilings on several food items.

However, the near term is dominated by negative risks, stemming mainly from the global repercussions of the war in Ukraine, tighter monetary policy in advanced countries and the associated increase in borrowing cost, as well as new COVID-19 variants’ outbreaks and continued instability in some neighboring countries.

The medium-term growth projections remain robust with the country facing also upside risks, notably related to the discovery of substantial oil and gas reserves. A resolute implementation of reforms under the 2021-25 National Development Plan (NDP) would boost medium-term growth.