IMF concludes seventh ECF review in Burkina Faso

6 Nov

The International Monetary Fund (IMF) says it has concluded the seventh review of programmes supported by the Extended Credit Facility (EFC) arrangement in Burkina Faso.

The IMF mission was in Ouagadougou between Oct. 17 and 30 during which it met with critical stakeholders in the economy. Leader of the team, Laura Redifer said in a report at the end of the mission that Burkina Faso’s economic performance remained strong.

“For 2014 and the medium term, projections for GDP growth remain around seventh per cent while inflation should remain subdued at about two per cent. She said that acceleration of public investment, good weather, and more favourable export conditions would result in higher growth.

Redifer said that projections for economic activity in 2013 had been slightly lowered to 6.8 per cent. “The Factors behind the reduction include lower international gold and cotton prices, fall in public investment projection and global economic developments.

“The reduction in growth projections would have been higher but the government took measures to improve resilience and productivity in agriculture,’’ she said.

According to her, inflation in Burkina Faso has declined sharply in 2013 due to lower food prices compared to most part of 2012. “It is expected to average 2.0 per cent for the year. External balances are expected to deteriorate somewhat in 2013 as a result of unfavourable terms of trade.

“Revenue collection in the first half of 2013 was broadly in line with expectations, despite lower revenues from gold production,’’ she said. The IMF official said that new measures taken by the government to address spending bottlenecks were expected to accelerate investment spending in 2014 and beyond.

“For the medium term, the overall budget deficit is projected to be about three per cent of GDP. Regarding the external sector, the current account deficit is likely to worsen.

“This is as a result of a slow recovery in the terms of trade and imports needed to support the government’s ambitious investment programme,’’ Redifer said.

She said that the quantitative targets for the seventh review of the current IMF-supported programme were mostly met by Burkina Faso.


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