West African Economic and Monetary Union (WAEMU): Staff Report on Common Policies for Member Countries-Press Release; Staff Report; and Statement by the Executive Director for the WAEMU

IMF Staff Country Reports, March 29, 2019

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West African Economic and Monetary Union (WAEMU): Staff Report on Common Policies for Member Countries-Press Release; Staff Report; and Statement by the Executive Director for the WAEMU

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Bibliographic details

• Published: March 29, 2019
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781498305907.002

Recent performance and reforms

• Growth remained strong in 2018.
• The fiscal deficit narrowed by 1/2 percentage point of GDP.
• External reserves increased.
• Important banking reforms were put in place, including the introduction of Basel II/III standards.

Medium-term outlook and risks

• The medium-term outlook remains positive despite somewhat less favorable global conditions.
• The outlook critically hinges on planned fiscal consolidation and structural reforms to improve competitiveness and allow the private sector to become the main engine of growth.
• Identified risks:
  • Terms-of-trade shocks.
  • Weather shocks.
  • A difficult security situation in some countries.

Fiscal policy findings and recommendations

• Collective adherence to fiscal consolidation commitments is essential to:
  • Lower risks of public debt distress.
  • Support international reserves.
  • Preserve external viability.
• Policy priorities emphasized:
  • Greater focus on domestic revenue mobilization.
  • More effective control of below-the-line operations.

Structural policy priorities

• Structural policies aimed at improving competitiveness and growth inclusiveness are critical to:
  • Reducing vulnerabilities to external shocks.
  • Building external buffers.
  • Stimulating private-sector-led growth.
  • Making the growth momentum sustainable.

Key thematic areas covered

• Banking, Credit, Fiscal consolidation, Fiscal policy, Government debt management, Monetary base, Money, Public debt, Public financial management (PFM).
• Keywords: banking sector reform, broad money, convergence criterion, CR, Credit, deficit, Fiscal consolidation, Global, Government debt management, ISCR, liquidity deficit, Monetary base, monetary policy transmission, Sub-Saharan Africa, terms of trade, WAEMU Commission, WEAMU Commission, West Africa.

IMF Staff Country Report No. 2019/090 (March 29, 2019).

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