IMF Staff Team Completes Mission to Côte d’Ivoire

IMF News, September 29, 2016

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IMF team led by Dan Ghura visited Abidjan from September 21 to 27, 2016 to continue discussions on a new three-year economic program potentially supported by the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF).
Discussions built on progress from the previous IMF staff visit in June-July 2016.
End-of-mission statement attributable to IMF staff; views expressed are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board.

Since 2011, economic growth averaged about 9 percent per year.
Real GDP growth is projected at around 8 percent for 2016 as a whole.
The budget deficit is projected at 4 percent of GDP in 2016, reflecting higher spending, including for security, health and education.
Economic growth is forecast to remain strong over the medium term, averaging 7.7 percent per year during 2017-19, reflecting buoyant domestic demand.
Inflation is projected to remain below 3 percent.
External current account deficit would widen to about 2.5 percent of GDP, reflecting investment-driven imports.

Government’s budget deficit would converge to the WAEMU norm of 3 percent of GDP by 2019 to preserve public debt sustainability and support the regional international reserves pool.
Mission and authorities agreed on the need to:
- Strengthen revenue mobilization through further improvements in tax administration and tax policy measures aimed at widening the tax base.
- Contain recurrent expenditure to create space for infrastructure investment and social spending.
Mission welcomed measures to enhance public financial and debt management practices, including establishing a comprehensive database to monitor the evolution of debt contracted by public entities beyond the central government.

Mission and authorities agreed on measures to address fiscal risks emanating from some public enterprises in financial difficulties.
Agreement reached on steps to accelerate the restructuring of public banks as well as public enterprise reforms.
Authorities requested further technical assistance to improve the quality and dissemination of economic statistics; mission welcomed that request.

Mission and authorities made further progress on a three-year macroeconomic and structural program which may be supported by arrangements under the ECF and the EFF, building upon strong record of program implementation during the 2011-15 ECF Arrangement.
Authorities and mission agreed to continue discussions in the weeks ahead, in particular on the fiscal path and the financing modalities of a new program.

The mission met with:
- Prime Minister and Minister of the Economy, Finance and Budget, Mr. Daniel Kablan Duncan;
- Mr. Adama Koné, Minister at the Prime Minister’s Office in charge of Economy and Finance;
- Mr. Abdourahmane Cissé, Minister at the Prime Minister’s Office in charge of the Budget and State Holdings;
- Mr. Chalouho Coulibaly, National Director of the BCEAO; other senior government officials; and representatives of Côte d’Ivoire’s development partners.
Media relations contact: PRESS OFFICER: Lucie Mboto Fouda; Phone: +1 202 623-7100; Email: MEDIA@IMF.org

IMF Press Release No. 16/437 (September 29, 2016).