{
  "title": "IMF Executive Board Concludes 2016 Article IV Consultation with Burkina Faso",
  "publication": "IMF News, December 22, 2016",
  "sourceUrl": "https://www.imf.org/en/news/articles/2016/12/22/pr16578-burkina-faso-imf-executive-board-concludes-2016-article-iv-consultation",
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  "summary": "On December 16, 2016, the Executive Board concluded the 2016 Article IV Consultation with Burkina Faso and completed the sixth Review under a three-year program supported by the IMF’s Extended Credit Facility (ECF) arrangement.",
  "publishDate": "2016-12-22",
  "sections": [
    {
      "heading": "Economic activity and near-term developments",
      "content": "- On December 16, 2016, the Executive Board concluded the 2016 Article IV Consultation with Burkina Faso and completed the sixth Review under a three-year program supported by the IMF’s Extended Credit Facility (ECF) arrangement.\n- Real GDP growth:\n  - 2015: 4.0 percent\n  - 2016 (projected): 5.4 percent\n- Drivers of the 2016 recovery:\n  - Two new gold mines coming on stream.\n  - A sharp projected rebound in agricultural output in late 2016-early 2017 after three disappointing years.\n  - The January terrorist attacks and delays in approving the budget weighed on activity early in 2016, but activity subsequently rebounded.\n- Inflation and credit:\n  - Consumer prices (end-of-period): 0.6 percent at end-year 2016.\n  - Private sector credit growth: 7.0 percent in 2015; projected 9.4 percent in 2016.\n- Policy developments:\n  - The government approved a five-year national economic and social development plan (PNDES) in July, aiming to transform the economy to achieve strong, sustainable and resilient growth, create jobs, and raise living standards."
    },
    {
      "heading": "Outlook and macroeconomic projections",
      "content": "- Growth outlook:\n  - 2017 (projected): 6.1 percent\n  - 2018 (projected): 6.3 percent\n- Factors supporting the recovery:\n  - Scaled up public infrastructure investment program.\n  - Supportive monetary stance.\n  - Higher agricultural output.\n  - Continued low international prices for energy imports.\n- Fiscal implications:\n  - Implementation of PNDES will increase public investment, notably to close energy and transport infrastructure gaps.\n  - Fiscal deficit is set to widen to 3.6 percent of GDP (context: planned increase in public investment)."
    },
    {
      "heading": "Program performance, reforms, and policy priorities",
      "content": "- Program performance:\n  - Program performance under the Fund-supported program remains strong; authorities advanced reforms to support medium-term economic performance and poverty reduction.\n- Key reform areas and actions:\n  - Improvements in tax administration and measures to broaden the tax base.\n  - Actions to improve the management and financial health of publicly-owned energy utilities.\n  - Comprehensive five-year development agenda to tackle growth bottlenecks, focusing on:\n    - Increasing physical and human capital.\n    - Improving the business environment.\n    - Expanding financial access.\n    - Lowering the cost of energy.\n- Fiscal policy guidance:\n  - Need to create fiscal space to sustainably and gradually scale up public investment.\n  - Contain recurrent spending, particularly the wage bill, to create adequate fiscal space for key public investment projects.\n  - Further improvements in public financial and debt management recommended.\n  - A Public Investment Management Assessment could help identify bottlenecks and improve the execution rate of the investment budget.\n- Sector-specific cautions:\n  - Continue reforms in the energy and cotton sector to avoid buildup of contingent liabilities and the need for subsidies.\n  - Protect the tax base from transfer pricing practices, particularly in the mining sector."
    },
    {
      "heading": "Executive Board assessment and recommendations",
      "content": "- Directors welcomed:\n  - Continued strong performance under the Fund-supported program.\n  - The improving economic outlook after two years of weaker growth.\n  - Progress in 2016 in mobilizing higher domestic revenue.\n  - The authorities’ comprehensive National Economic and Social Development Plan.\n- Directors emphasized:\n  - Sustaining higher growth requires sound policies, fiscal space, and ambitious structural reforms to reduce barriers to higher and more inclusive growth.\n  - Careful prioritization and sequencing of public investment projects and effective measures to improve absorptive capacity.\n  - Caution against too rapid an increase in public investment that could negatively impact efficiency and debt sustainability.\n  - Continued efforts to improve competitiveness by alleviating infrastructure bottlenecks, fostering agricultural sector dynamism, and enabling the financial sector to better support the real economy.\n  - Consolidate and build upon recent successes in improving the financial health of state-owned energy companies to support critical investments to increase electricity supply.\n- Next steps:\n  - The next Article IV consultation with Burkina Faso is expected to take place in accordance with the Executive Board decision on consultation cycles for members with Fund arrangements."
    },
    {
      "heading": "Selected economic indicators (annual percentage change or as indicated)",
      "content": "- GDP at constant prices:\n  - 2012: 6.5\n  - 2013: 5.7\n  - 2014: 4.2\n  - 2015: 4.0\n  - 2016 (Prel./Proj.): 5.4\n  - 2017 (Proj.): 6.1\n  - 2018 (Proj.): 6.3\n- GDP deflator:\n  - 2012: 5.8\n  - 2013: -2.1\n  - 2014: -0.9\n  - 2015: 3.7\n  - 2016 (Prel./Proj.): 1.9\n  - 2017 (Proj.): 2.0\n- Consumer prices (eop):\n  - 2012: 1.7\n  - 2013: 0.1\n  - 2014: -0.1\n  - 2015: 1.3\n  - 2016 (Prel./Proj.): 0.6\n- Exchange rate (eop, depreciation -) CFAF per US dollar:\n  - 2012: -0.5\n  - 2013: 4.3\n  - 2014: -11.1\n  - 2015: -13.4\n  - 2016 (Prel./Proj.): 3.1\n  - 2017 (Proj.): 0.7\n  - 2018 (Proj.): 0.5\n- Private sector credit:\n  - 2012: 24.1\n  - 2013: 26.3\n  - 2014: 18.9\n  - 2015: 7.0\n  - 2016 (Prel./Proj.): 9.4\n  - 2017 (Proj.): 12.9\n  - 2018 (Proj.): 14.7\n- Broad money:\n  - 2012: 15.9\n  - 2013: 11.3\n  - 2014: 11.9\n  - 2015: 19.9\n  - 2016 (Prel./Proj.): 13.3\n  - 2017 (Proj.): 18.4\n- Net domestic assets (banking system):\n  - 2012: 16.1\n  - 2013: 19.6\n  - 2014: 20.0\n  - 2015: 7.3\n  - 2016 (Prel./Proj.): 9.6\n  - 2017 (Proj.): 14.9\n  - 2018 (Proj.): 12.7\n- Credit to the government (banking system):\n  - 2012: -2.7\n  - 2013: 5.3\n  - 2014: 4.9\n  - 2015: 1.8\n  - 2016 (Prel./Proj.): 1.2\n  - 2017 (Proj.): 2.9\n- Central government finances (percent of GDP):\n  - Current revenue:\n    - 2012: 17.5\n    - 2013: 19.0\n    - 2014: 18.3\n    - 2015: 19.3\n  - Total expenditure and net lending:\n    - 2012: 25.5\n    - 2013: 28.0\n    - 2014: 23.6\n    - 2015: 21.5\n    - 2016 (Prel./Proj.): 24.5\n    - 2017 (Proj.): 26.5\n    - 2018 (Proj.): 26.8\n  - Primary balance:\n    - 2012: -2.4\n    - 2013: -3.0\n    - 2014: -1.1\n    - 2015: -1.5\n    - 2016 (Prel./Proj.): -1.8\n    - 2017 (Proj.): -2.8\n  - Overall fiscal balance, incl. grants:\n    - 2012: -3.1\n    - 2013: -3.6\n    - 2014: -1.9\n    - 2015: -2.5\n    - 2016 (Prel./Proj.): -3.5\n- Total Public Debt:\n  - 2012: 28.3\n  - 2013: 29.3\n  - 2014: 30.6\n  - 2015: 32.5\n  - 2016 (Prel./Proj.): 31.7\n  - 2017 (Proj.): 32.6\n  - 2018 (Proj.): 32.9\n- Public External Debt:\n  - 2012: 22.6\n  - 2013: 21.9\n  - 2014: 22.0\n  - 2015: 23.8\n  - 2016 (Prel./Proj.): 23.2\n  - 2017 (Proj.): 22.4\n  - 2018 (Proj.): 22.3\n- External sector:\n  - Exports (f.o.b.; valued in CFAF):\n    - 2012: 2.3\n    - 2013: 7.4\n    - 2014: 17.2\n    - 2015: 8.0\n  - Imports (f.o.b.; valued in CFAF):\n    - 2012: 19.8\n    - 2013: 21.3\n    - 2014: -9.3\n    - 2015: 3.3\n    - 2016 (Prel./Proj.): 7.9\n    - 2017 (Proj.): 13.8\n  - Terms of trade:\n    - 2012: 11.1\n    - 2013: -12.8\n    - 2014: -5.5\n    - 2015: 8.7\n- Current Account (percent of GDP):\n  - 2012: -7.0\n  - 2013: -11.3\n  - 2014: -8.1\n  - 2015: -8.0\n  - 2016 (Prel./Proj.): -7.6\n  - 2017 (Proj.): -6.7\n  - 2018 (Proj.): -6.5\n- Memorandum items:\n  - Nominal GDP (US$ billion):\n    - 2015: 11.2\n    - 2016: 12.3\n    - 2017: 12.0\n    - 2018 (Proj.): 13.1\n    - 2018 (Proj. in table): 14.3\n  - Nominal GDP per capita (US$):\n    - 2012: 677.1\n    - 2013: 706.4\n    - 2014: 707.8\n    - 2015: 619.9\n    - 2016 (Prel./Proj.): 651.6\n    - 2017 (Proj.): 692.5\n    - 2018 (Proj.): 734.4\n\nSource: IMF Communications Department — Press Release No. 16/578, December 22, 2016.\n\n---\n\n\n References\n\n- Burkina Faso and the IMF\n- IMF Policy Advice -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- press release\n- http://www.imf.org/external/np/sec/misc/qualifiers.htm\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2016/12/22/pr16578-burkina-faso-imf-executive-board-concludes-2016-article-iv-consultation"
    }
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    "Published: December 22, 2016",
    "On December 16, 2016, the Executive Board concluded the 2016 Article IV Consultation with Burkina Faso and completed the sixth Review under a three-year program supported by the IMF’s Extended Credit Facility (ECF) arrangement.",
    "Real GDP growth:",
    "Drivers of the 2016 recovery:",
    "Inflation and credit:",
    "Policy developments:",
    "Growth outlook:",
    "Factors supporting the recovery:",
    "Fiscal implications:",
    "Program performance:",
    "Key reform areas and actions:",
    "Fiscal policy guidance:",
    "Sector-specific cautions:",
    "Directors welcomed:",
    "Directors emphasized:",
    "Next steps:",
    "GDP at constant prices:",
    "GDP deflator:",
    "Consumer prices (eop):",
    "Exchange rate (eop, depreciation -) CFAF per US dollar:",
    "Private sector credit:",
    "Broad money:",
    "Net domestic assets (banking system):",
    "Credit to the government (banking system):",
    "Central government finances (percent of GDP):",
    "Total Public Debt:",
    "Public External Debt:",
    "External sector:",
    "Current Account (percent of GDP):",
    "Memorandum items:",
    "[Burkina Faso and the IMF](http://www.imf.org/external/country/BFA/index.htm)",
    "[IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[press release](http://www.imf.org/en/News/Articles/2016/12/16/pr16564-IMF-Executive-Board-Completes-Sixth-Review-Under-the-ECF-Arrangement)",
    "[http://www.imf.org/external/np/sec/misc/qualifiers.htm](http://www.imf.org/external/np/sec/misc/qualifiers.htm)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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