IMF Staff Position Notes

The Global Financial Crisis : Impact on WAEMU Member Countries and Policy Options

Author/Editor:

Johannes Mueller ; Irene Yackovlev ; Hans Weisfeld

Publication Date:

March 18, 2009

Electronic Access:

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Summary:

Most WAEMU countries are likely to see economic growth deteriorate over the next two years as a result of the global economic crisis, and some WAEMU countries will be more severely affected by the crisis than others. This could have a detrimental effect on efforts to reduce poverty. Deteriorating remittances and commodity export prices are projected to negatively affect the WAEMU countries’ external current account deficit and reserves, although the impact should be cushioned by positive terms-of-trade shocks, such as declining import prices for food and fuel products. These developments should also help lower inflation pressures, bringing WAEMU inflation closer to its historical level of about 2 percent by 2010.

Series:

Staff Position Note No. 2009/16

Subject:

Aid flows Bank supervision Banking sector Credit risk Current account deficits External shocks Financial crisis Fiscal policy Inflation Liquidity management Monetary policy Monetary unions Terms of trade West Africa

Frequency:

Annually