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, April 17, 2024
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- 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
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Bibliographic details
- Published: April 17, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400274787.002
Macroeconomic performance and outlook
- Growth estimated at 5.1 percent in 2023, reflecting resilience amid significant adverse shocks.
- Inflation has fallen rapidly from its 2022 peaks and is now back within the 1–3 percent target range.
- Fiscal policy needs to ensure a credible medium-term commitment to debt sustainability, while keeping deficits consistent with available financing.
Fiscal policy and public debt
- Key finding: credible medium-term fiscal consolidation is required to secure debt sustainability.
- Policy recommendation: align deficits with available financing to avoid destabilizing debt dynamics.
- Operational priority: implement measures that balance consolidation with financing constraints to preserve growth.
Financial sector stability and sovereign-bank nexus
- Finding: the financial sector has been resilient so far.
- Risk identified: the banking sector’s exposures to governments require a medium-term plan to address the sovereign-bank nexus.
- Policy recommendation: design a medium-term strategy to reduce sovereign risk concentration in banks while avoiding disruptions in the regional debt market.
Regional integration, institutions, and political cohesion
- WAEMU’s prosperity depends on maintaining political cohesion and deepening economic integration.
- Institutional strengthening and infrastructure development are highlighted as central to long-term growth.
Productive capacity and development priorities
- Regional growth prospects would be enhanced by continued efforts to increase common productive capacity in:
- Energy
- Infrastructure
- Food resilience
- These priorities align with the WAEMU Commission’s Regional Development Strategy.
Thematic coverage (subjects and keywords)
- Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT); Credit; Crime; Financial sector policy and analysis; Financial sector stability; Fiscal consolidation; Fiscal policy; International organization; Monetary policy; Money; Public debt.
- Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT); Credit; Financial sector stability; Fiscal consolidation; policy advice; Sub-Saharan Africa; WAEMU convergence pact; WAEMU institution; WAEMU member; WAEMU member country; West Africa.
Source: 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 Report No. 2024/090).
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- West African Economic and Monetary Union — Staff Report on Common Policies for Member Countries