IMF Staff Team Completes Mission to Côte d’Ivoire

IMF News, July 7, 2016

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A staff team from the International Monetary Fund (IMF) led by Mr. Dan Ghura visited Abidjan from June 24 to July 7, 2016, to negotiate a new three-year economic program that could be supported by the IMF through Arrangements under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF).
The statement reflects preliminary findings of the IMF staff and does not necessarily represent the views of the IMF’s Executive Board.
Press officer: Lucie Mboto Fouda. Phone: +1 202 623-7100. Email: MEDIA@IMF.org

Real GDP growth is estimated at 8.5 percent in 2015.
Year-on-year inflation increased to 2.3 percent in May 2016.
Strong revenues, under execution of externally-financed capital spending, and expenditure containment measures helped limit the 2015 fiscal deficit to 3 percent of GDP.
Satisfactory budget execution reported in the first quarter of 2016.

Real GDP growth is projected at about 8 percent in 2016, supported by the dynamism of the secondary and tertiary sectors.
The budget deficit is expected to widen somewhat beyond the 3.5 percent of GDP target of the 2016 Finance Law, on the back of higher spending, including for security, health and education.
Macroeconomic prospects for the remainder of 2016 and the medium term are described as favorable, provided policies are geared towards mitigating external and domestic risks.

The authorities and the IMF team concurred that to preserve public debt sustainability and support the regional international reserve pool, the government’s budget deficit should converge to the WAEMU norm of 3 percent of GDP by 2019.
Achieving this convergence would require boosting domestic revenue mobilization.

The mission takes note of the authorities’ plans to accelerate the restructuring of public banks.
The mission is encouraged by the government’s intentions to address fiscal risks emanating from some public enterprises in financial difficulties.

A follow-up IMF mission is expected to visit Abidjan in September of this year when details of the draft 2017 Budget under preparation will be available, with a view to continue discussions on a new IMF-supported economic and financial program.
The mission met with President Ouattara; Mr. Daniel Kablan Duncan, Prime Minister and Minister of Economy, Finance and Budget; Mr. Thierry Tanoh, Minister, Deputy General Secretary at the Presidency in charge of Economy and Finance; Mr. Adama Kone, Minister at the Prime Minister’s Office in charge of Economy and Finance; Mr. Abdourahmane Cisse, Minister at the Prime Minister’s Office in charge of the Budget and State Holdings; Ms. Nialé Kaba, Minister of Plan and Development; Mr. Adama Toungara, Minister of Petroleum and Energy; other senior public officials, including from the Banque des Etats d’Afrique de l’Ouest (BCEAO), as well as representatives of the private sector, the donor community and civil society.
“The IMF team thanks the Ivoirien authorities for their hospitality and for the constructive discussions.”

IMF Press Release No. 16/325 — July 7, 2016