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(Ecofin Agency) – Since September 2023, Burkina Faso has been implementing an economic reform program under the supervision of the IMF to make its economy stronger and more resilient. Following a review of the program, the IMF praised the country for its progress, especially in managing public spending effectively.
Burkina Faso’s economy is expected to grow by 4.2% in 2024, according to the International Monetary Fund (IMF). This positive outlook comes after a two-week visit by IMF officials to the country’s capital, Ouagadougou.
In a November 14 statement, the IMF attributed this growth to the national economy’s resilience, particularly the service sector’s strong performance, despite ongoing security challenges.
Beyond the economic forecast, the IMF commended the Burkina Faso government for the progress made in implementing economic reforms. “Most quantitative indicators and structural benchmarks have been met,” noted Martin Schindler, the IMF mission chief. He praised the government’s efforts, especially in controlling the public wage bill, energy subsidies, and increasing the ceiling for VAT credit refunds.
This fiscal discipline aims to stabilize the national economy, despite numerous challenges including persistent food insecurity and high borrowing costs. The government aims to reduce the budget deficit to around 5% of GDP in 2024, gradually converging towards a level of 3% by 2027, in line with the standards of the West African Economic and Monetary Union (WAEMU).
The IMF mission resulted in a staff-level agreement for the second review of the financial program under the Extended Credit Facility (ECF). If approved by the IMF’s executive board, this agreement will allow Burkina Faso to receive approximately $32 million. This support is part of ongoing efforts to stabilize the Burkinabe economy in the face of security and economic challenges.
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