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, May 19, 2025

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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

IMF staff report on common policies for member countries of West African Economic and Monetary Union (WAEMU).
Economic growth in the WAEMU is described as continuing to be strong.
Inflation has fallen back to its target range.
Recent improvements in regional external imbalances are supporting a strong recovery in reserves.
The Council of Ministers has agreed to submit for approval by Heads of State a proposal by the WAEMU Commission for a revised Convergence Pact maintaining the previous fiscal deficit and public debt ceilings of 3 and 70 percent of gross domestic product, respectively.
Public debt ratios have increased significantly and heterogeneously in recent years due to large fiscal deficits and stock-flow adjustments.
Progress in union-wide fiscal consolidation is ongoing but proceeding at a slower pace than anticipated mainly because of large data revisions in Senegal.
Rapid adoption of the revised Convergence Pact would signal a stronger commitment to debt sustainability and help guide sound fiscal policies.
The WAEMU's institutions should continue to promote regional integration.

Growth: Economic growth continues to be strong in the WAEMU.
Inflation: Inflation has fallen back to its target range.
External sector: Recent improvements in regional external imbalances are supporting a strong recovery in reserves.

Convergence Pact proposal: Maintains previous fiscal deficit ceiling of 3 and public debt ceiling of 70 percent of gross domestic product.
Public debt dynamics: Public debt ratios have increased significantly and heterogeneously in recent years.
Drivers of debt increases: Large fiscal deficits and stock-flow adjustments.
Fiscal consolidation: Ongoing progress in union-wide fiscal consolidation is welcome but slower than anticipated, mainly due to large data revisions in Senegal.
Policy signal: Rapid adoption of the revised Convergence Pact would signal stronger commitment to debt sustainability and help guide sound fiscal policies.

Adopt the revised Convergence Pact rapidly to reinforce commitment to debt sustainability.
Continue union-wide fiscal consolidation efforts, with attention to data quality and revisions (notably Senegal).
WAEMU institutions should continue to promote regional integration to support macroeconomic stability and reserves recovery.

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