Press Release No. 16/437

IMF Staff Team Completes Mission to Côte d’Ivoire

September 29, 2016

• IMF team and the authorities made good progress on discussions on 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) .
• Solid macroeconomic performance continued in the first half of 2016 notwithstanding the impact of a drought on agriculture, and real GDP growth is projected at around 8 percent for the year as a whole.

An International Monetary Fund (IMF) team led by Dan Ghura visited Abidjan from September 21 to 27, 2016 to continue discussions on 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 discussions built on progress made during the previous IMF staff visit in June-July 2016. At the conclusion of the visit, Mr. Ghura made the following statement:

“Côte d’Ivoire has experienced an impressive turnaround since 2011, with economic growth averaging about 9 percent per year. The economic outlook remains strong. The authorities’ 2016-20 National Development Plan (NDP) appropriately prioritizes inclusive and sustainable growth, focusing on structural transformation and improving living standards.

“In this context, the Ivoirien authorities and the mission made further progress on a three-year macroeconomic and structural program, which may be supported by arrangements under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) with a view to building upon its strong record of program implementation during the 2011-15 ECF Arrangement.

“Solid macroeconomic performance continued in the first half of 2016 notwithstanding the impact of a drought on agriculture, and real GDP growth is projected at around 8 percent for the year 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, and reflecting investment-driven imports, the external current account deficit would widen to about 2.5 percent of GDP.

“To preserve public debt sustainability and support the regional international reserves pool, the government’s budget deficit would converge to the WAEMU norm of 3 percent of GDP by 2019. To this end, the mission agreed with the authorities on the need to strengthen revenue mobilization, through further improvements in tax administration but also tax policy measures aimed at widening the tax base, and to contain recurrent expenditure, which would create space for infrastructure investment and social spending.

“The mission welcomed measures to enhance public financial and debt management practices, including through the establishment of a comprehensive database to monitor the evolution of debt contracted by public entities beyond the central government. The mission and the authorities agreed on measures to address fiscal risks emanating from some public enterprises in financial difficulties. Agreement was also reached on steps to accelerate the restructuring of public banks as well as public enterprise reforms. The mission welcomed the authorities’ request for further technical assistance in support of their efforts to improve the quality and dissemination of economic statistics.

“The authorities and the 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 wishes to thank the authorities for their warm hospitality, their excellent cooperation, and the constructive dialogue that prevailed during the discussions.”

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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.