Press Release: Statement by an IMF Staff Mission at the Conclusion of a Visit to Niger

IMF News, October 2, 2008

Source details

Canonical URL: Press Release: Statement by an IMF Staff Mission at the Conclusion of a Visit to Niger

Mission led by Emilio Sacerdoti, mission chief for Niger.
Visit dates: September 16-October 2, 2008.
Meetings included:
- Minister of Economy and Finance, Mr. Ali Mahaman Lamine Zeine.
- National Director of the Central Bank of Western African States, Mr. Oumarou Gagere.
- Senior staff of a number of ministries, representatives of the private sector and civil society, and the donor community.
Purpose: to conduct the discussion for the Article IV consultation and the first review of the authorities' program supported by the Poverty Reduction and Growth Facility (PRGF) arrangement.

Growth and output:
- Real GDP is projected to grow by 5.9 percent this year (2008), up from 3.3 percent in 2007.
Agriculture and weather:
- Robust private and public sector investment sustained economic activity in the first half of 2008.
- Favorable rains in recent months are likely to lead to a bumper crop.
Inflation and prices:
- Increases in imported petroleum and food prices have led to an acceleration of consumer price inflation in the year to August 2008.
- Inflation should decline significantly in the coming months because of the expected good harvest.
Social protection:
- The mission welcomes the targeted food assistance programs carried out by the authorities, with donor assistance, to alleviate the impact of higher food prices on vulnerable groups.

First-half 2008 fiscal performance:
- Budgetary expenditure and revenue were in line with the program in the first half of the year.
- Overall program performance described as satisfactory.
Authorities' intentions for 2009 budget:
- Authorities expressed their intention to allocate in the 2009 budget the large exceptional revenue received in 2008 to finance priority programs in infrastructure and social sectors in line with the Poverty Reduction Strategy Paper (PRSP).
- The mission expressed broad agreement with the proposed budget but cautioned the authorities to review carefully the key investment projects before bringing them to the implementation phase.

Continued implementation welcomed:
- The mission welcomed the continued implementation of structural reforms in financial management and the financial sector.
Areas requiring further determined action:
- Strengthen public finance management.
- Streamline the tax regime so as to facilitate private sector activity.
- Implement measures aimed at improving the business climate.
Program emphasis:
- Particular attention will be given under the program to the measures above.

Conditional outlook:
- With the continued implementation of the policies under the program and subject to approval by IMF management, it is expected that the IMF's Executive Board will discuss the first review of Niger's program under the PRGF in November/December 2008.

Press Release No. 08/229, October 2, 2008.