IMF Executive Board Concludes 2026 Discussions on Common Policies of the West African Economic and Monetary Union
IMF News, May 21, 2026
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- Published: May 21, 2026
Recent developments and 2025 outcomes
- WAEMU was among the fastest growing regions in the world in 2025.
- Economic growth in the WAEMU reached 6.6 percent in 2025.
- Inflation fell below its target range from mid-2025, driven primarily by transitory food price deflation.
- Current account deficit narrowed from 5.7 percent of GDP in 2024 to 1.7 percent in 2025.
- Reserves reached 7.8 months of prospective imports in February 2026.
- The Central Bank of West African States (BCEAO) lowered policy rates by a cumulative 50 basis points since June 2025.
- Fiscal deficit narrowed from 5.4 percent of GDP in 2024 to 3.4 percent in 2025.
- Debt-to-GDP ratio fell from 68 percent in 2024 to an estimated 65 percent in 2025.
- Increased issuance on the regional debt market in 2025 raised banks’ sovereign exposure risks.
- Banking system remains broadly solid overall, but risks include persistently high non-performing loans (NPLs), low provisioning, elevated sovereign exposures, and pockets of vulnerability in some countries.
Macroeconomic outlook and projections
- Growth projection: moderate to about 5.5 percent in 2026; stabilizing at around 6 percent over the medium term.
- Inflation: expected to return to the target range in 2026.
- Fiscal convergence: progress toward the 3 percent of GDP deficit target is expected to continue, with delays in several countries.
- Reserves projection: increase gradually, reaching about 8.1 months of prospective imports by 2030.
- Key downside risks highlighted: the war in the Middle East, high debt burdens and elevated sovereign financing needs, strong sovereign-bank nexus with pockets of financial sector vulnerability, and exposure to security and climate shocks.
Executive Board assessment and policy priorities
- Directors welcomed strong growth, low inflation, progress in reducing fiscal imbalances, and rebuilding external buffers.
- Emphasized heterogeneity across countries in policy space, implementation capacity, and exposure to risks.
- Fiscal policy:
- Credible and sustained fiscal convergence toward the 3 percent deficit target is the priority.
- Fiscal adjustment should be driven primarily by domestic revenue mobilization, alongside measures to contain debt creating stock flow adjustments.
- Improvements in fiscal and debt transparency are important.
- Rapid adoption of the enhanced WAEMU Convergence Pact was urged.
- Avoid fiscal slippages to prevent strained financing conditions and exacerbated sovereign-bank nexus risks.
- Monetary policy:
- Current stance broadly appropriate; should remain data dependent.
- Focus on maintaining price stability while safeguarding financial stability.
- BCEAO should be ready to adjust policy stance if conditions deteriorate.
- Financial sector:
- Address elevated sovereign exposures, persistently high NPLs, low provisioning, and pockets of vulnerability with prudential, supervisory, and crisis preparedness measures.
- Full implementation of remaining FSAP recommendations is essential.
- Structural and regional policy:
- Strengthen regional solidarity, deepen economic integration, and sustain inclusive growth.
- Support the 2030 Strategic Plan to foster economic transformation and diversification, reduce trade barriers, and strengthen regional value chains.
- Monitoring:
- Closely monitor regional market conditions given increased regional issuance and sovereign-bank nexus risks.
Selected key statistics (as presented)
- Nominal GDP (2025, millions of US Dollars): 253,956
- GDP per capita (2025, US Dollars): 1,615
- Headcount ratio at $1.90 a day (2011 PPP, percent of population): 35.0
- Undernourishment (percent of population): 10.5
- Total population (2024, millions): 147.8
- Urban population (2024, percent of total): 41.5
- Life expectancy at birth (2023, years): 62.2
- Gini index: 35.4
Macro projections and indicators (selected series, annual percent change or percent of GDP as shown)
- GDP at constant prices: 2021: 6.1; 2022: 5.9; 2023: 5.4; 2024: 6.4; 2025 (Est.): 6.3; 2026 (Projected): 6.6; 2027: 5.5; 2028: 5.6; 2029: 5.7; 2030: 5.8
- Consumer prices (average): 2021: 7.4; 2022: 3.8; 2023: 0.1; 2024: 2.0; 2025: (table shows terms of trade and related series; inflation described as below target range from mid-2025 and expected to return to target in 2026)
- Gross international reserves (in months of next year's imports): 2021: 5.0; 2022: 7.0; 2023: 7.3; 2024: 7.6; 2025: 7.8; 2026: 7.9
- Overall fiscal balance, incl. grants: 2021: -6.7; 2022: -8.2; 2023: -6.6; 2024: -5.4; 2025: -5.2; 2026: -3.4; 2027: -3.3; 2028: -3.0; 2029: -2.9
- Total public debt (percent of GDP): 2021: 59.1; 2022: 62.5; 2023: 65.1; 2024: 67.6; 2025: 65.0; 2026: 64.7; 2027: 63.9; 2028: 62.7; 2029: 61.2; 2030: 59.9
- External public debt (percent of GDP): 2021: 37.5; 2022: 38.0; 2023: 40.7; 2024: 40.9; 2025: 39.9; 2026: 37.9; 2027: 36.9; 2028: 36.0; 2029: 34.9; 2030: 33.7
- Gross international reserves (in millions of US dollars): 2021: 24,172; 2022: 18,398; 2023: 15,979; 2024: 21,408; 2025: 21,593; 2026: 40,850; 2027: 45,679; 2028: 49,760; 2029: 53,574; 2030: 57,773; 2031 (memorandum line): 62,865 (table presents up to 2030 and a final memorandum series)
Implementation and next steps
- Staff report was prepared for the consultation and the authorities consented to publication.
- Views expressed will form part of Article IV consultations with individual member countries until the next Board discussion of WAEMU common policies.
- Next regional discussions with WAEMU authorities expected on the standard 12-month cycle.
IMF Executive Board press release, May 21, 2026.