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

IMF Staff Country Reports, March 2, 2021

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

After almost a decade of strong growth, the WAEMU region is facing severe challenges from a triple crisis impacting the health, economic and security situations.
Both fiscal and monetary policies were relaxed significantly in 2020 to contain the pandemic and support the economy.
A gradual fiscal consolidation is expected to start in 2021 and bring back the aggregate fiscal deficit towards the 3 percent of GDP regional ceiling within three years.
Growth is expected to recover swiftly in 2021–22 to pre-crisis levels, but the economic outlook is still uncertain.

Fiscal policy:
- Significant relaxation in 2020 to contain the pandemic and support the economy.
- Gradual fiscal consolidation expected to start in 2021.
- Objective: bring aggregate fiscal deficit towards the 3 percent of GDP regional ceiling within three years.
Monetary policy:
- Monetary policy was relaxed significantly in 2020 to support the economy.
Growth outlook:
- Growth is expected to recover swiftly in 2021–22 to pre-crisis levels.
- The economic outlook remains uncertain.

Subject: COVID-19, Credit, Expenditure, Financial institutions, Government debt management, Health, Money, Public financial management (PFM), Securities
Keywords: COVID-19, CR, Credit, executive board discussion, GDP ratio, GDP series, Government debt management, gradual fiscal consolidation, IMF definition, ISCR, policy dialogue, Securities, Sub-Saharan Africa, WAEMU region, West Africa