{
  "title": "IMF Executive Board Concludes 2026 Discussions on Common Policies of the West African Economic and Monetary Union",
  "publication": "IMF News, May 21, 2026",
  "sourceUrl": "https://www.imf.org/en/news/articles/2026/05/21/pr26166-imf-concludes-2026-discussions-on-common-policies-of-waemu",
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  "summary": "The WAEMU was among the fastest growing regions in the world in 2025, with low inflation and external reserves at comfortable levels following a sharp recovery. Fiscal deficits narrowed and public debt declined for the first time in over a decade.",
  "publishDate": "2026-05-21",
  "sections": [
    {
      "heading": "Recent developments and 2025 outcomes",
      "content": "- WAEMU was among the fastest growing regions in the world in 2025.\n- Economic growth in the WAEMU reached 6.6 percent in 2025.\n- Inflation fell below its target range from mid-2025, driven primarily by transitory food price deflation.\n- Current account deficit narrowed from 5.7 percent of GDP in 2024 to 1.7 percent in 2025.\n- Reserves reached 7.8 months of prospective imports in February 2026.\n- The Central Bank of West African States (BCEAO) lowered policy rates by a cumulative 50 basis points since June 2025.\n- Fiscal deficit narrowed from 5.4 percent of GDP in 2024 to 3.4 percent in 2025.\n- Debt-to-GDP ratio fell from 68 percent in 2024 to an estimated 65 percent in 2025.\n- Increased issuance on the regional debt market in 2025 raised banks’ sovereign exposure risks.\n- 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."
    },
    {
      "heading": "Macroeconomic outlook and projections",
      "content": "- Growth projection: moderate to about 5.5 percent in 2026; stabilizing at around 6 percent over the medium term.\n- Inflation: expected to return to the target range in 2026.\n- Fiscal convergence: progress toward the 3 percent of GDP deficit target is expected to continue, with delays in several countries.\n- Reserves projection: increase gradually, reaching about 8.1 months of prospective imports by 2030.\n- 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."
    },
    {
      "heading": "Executive Board assessment and policy priorities",
      "content": "- Directors welcomed strong growth, low inflation, progress in reducing fiscal imbalances, and rebuilding external buffers.\n- Emphasized heterogeneity across countries in policy space, implementation capacity, and exposure to risks.\n- Fiscal policy:\n  - Credible and sustained fiscal convergence toward the 3 percent deficit target is the priority.\n  - Fiscal adjustment should be driven primarily by domestic revenue mobilization, alongside measures to contain debt creating stock flow adjustments.\n  - Improvements in fiscal and debt transparency are important.\n  - Rapid adoption of the enhanced WAEMU Convergence Pact was urged.\n  - Avoid fiscal slippages to prevent strained financing conditions and exacerbated sovereign-bank nexus risks.\n- Monetary policy:\n  - Current stance broadly appropriate; should remain data dependent.\n  - Focus on maintaining price stability while safeguarding financial stability.\n  - BCEAO should be ready to adjust policy stance if conditions deteriorate.\n- Financial sector:\n  - Address elevated sovereign exposures, persistently high NPLs, low provisioning, and pockets of vulnerability with prudential, supervisory, and crisis preparedness measures.\n  - Full implementation of remaining FSAP recommendations is essential.\n- Structural and regional policy:\n  - Strengthen regional solidarity, deepen economic integration, and sustain inclusive growth.\n  - Support the 2030 Strategic Plan to foster economic transformation and diversification, reduce trade barriers, and strengthen regional value chains.\n- Monitoring:\n  - Closely monitor regional market conditions given increased regional issuance and sovereign-bank nexus risks."
    },
    {
      "heading": "Selected key statistics (as presented)",
      "content": "- Nominal GDP (2025, millions of US Dollars): 253,956\n- GDP per capita (2025, US Dollars): 1,615\n- Headcount ratio at $1.90 a day (2011 PPP, percent of population): 35.0\n- Undernourishment (percent of population): 10.5\n- Total population (2024, millions): 147.8\n- Urban population (2024, percent of total): 41.5\n- Life expectancy at birth (2023, years): 62.2\n- Gini index: 35.4\n\nMacro projections and indicators (selected series, annual percent change or percent of GDP as shown)\n- 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\n- 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)\n- 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\n- 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\n- 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\n- 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\n- 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)"
    },
    {
      "heading": "Implementation and next steps",
      "content": "- Staff report was prepared for the consultation and the authorities consented to publication.\n- Views expressed will form part of Article IV consultations with individual member countries until the next Board discussion of WAEMU common policies.\n- Next regional discussions with WAEMU authorities expected on the standard 12-month cycle.\n\nIMF Executive Board press release, May 21, 2026.\n\n---\n\n\n References\n\n- Press Releases\n- PRESS CENTER\n- www.imf.org/[country\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/2026/05/21/pr26166-imf-concludes-2026-discussions-on-common-policies-of-waemu"
    }
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    "Published: May 21, 2026",
    "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.",
    "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.",
    "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:",
    "Monetary policy:",
    "Financial sector:",
    "Structural and regional policy:",
    "Monitoring:",
    "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",
    "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)",
    "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.",
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