| Recent macroeconomic and financial developments |
| Economic activity was vigorous in 2023, with real GDP growth estimated at 6.5%, up from 6.2% in 2022, driven by investment (public and private) and domestic consumption. Despite a 22.7% drop in cocoa production, economic growth was sustained by the dynamism of food-producing agriculture, construction and public works, manufacturing and extractive industries, trade, and transport. Inflation decelerated from 5.2% in 2022 to 4.4% in 2023 responding to restrictive monetary policy by the Central Bank of West African States, as well as government measures to combat the high cost of living. |
| Continued reforms to increase domestic revenue and improve budget management helped reduce the budget deficit from 6.8% of GDP in 2022 to 5.2% in 2023, enabling the debt ratio to stabilize at 56.8% of GDP in 2023 (compared with 56.7% in 2022). The current account deficit widened from 7.7% of GDP in 2022 to 8.2% in 2023 due to deficits in services and income. Financial sector performance remains satisfactory, with credit to the economy up 16.2% between 2022 and 2023 and nonperforming loans down 7.2% between December 2022 and June 2023. |
| According to the second Harmonized Survey of Household Living Conditions, the poverty rate fell from 39.4% in 2018 to 37.5% in 2021. Although the youth (ages 15–24) unemployment rate declined from 5.4% in 2020 to 4.9% in 2023, it remains a major challenge to social cohesion. Strengthening the inclusiveness of growth and enabling the creation of more jobs for young people are at the heart of the government’s 2022–24 social program and 2023–25 youth program. |
| Outlook and risks |
| The economic outlook remains favourable, with real GDP growth projected to average 7% in 2024–25, driven by increased cocoa production in response to higher cocoa prices, investment in infrastructure, the development of agro-industrial value chains, and the exploitation of the Baleine field, whose potential is estimated at 2.5 billion barrels of oil and 3,300 cubic feet of natural gas. Inflation is projected to fall below the West African Economic and Monetary Union target of 3% in 2025 thanks to an increase in the local supply of food products. Fiscal consolidation is projected to contain the budget deficit at 4.2% of GDP in 2024 and 3% in 2025. The current account deficit is projected to narrow to 6.9% of GDP in 2024 and 6.1% in 2025, supported by improvements in the terms of trade. However, this outlook could be jeopardized by a deterioration of the security situation in the north, worsened by high youth unemployment; the impact of Russia’s invasion of Ukraine; tighter international financial conditions; and climate hazards. Strengthening macroeconomic stability, the inclusiveness and sustainability of growth, and security and institutional stability should make it possible to contain these risks. |
| Reform of the global financial architecture |
| The structural transformation of the economy is proceeding slowly. The industrial sector’s share of GDP rose from 16.4% in 2000 to 22% in 2022, while agriculture’s share declined from 18.7% to 16.8% and services’ share fell from 59.6% to 53.9%. Agriculture’s share of employment contracted from 51.1% in 2000 to 40.2% in 2019, while services’ share expanded from 36.2% to 47%, and industry’s share remained virtually unchanged at 12.6% in 2000 and 12.9% in 2019. Improved agricultural productivity, more complex export products, and investments in infrastructure, technological innovation, and human capital, combined with reforms to increase domestic resources, improve the business climate, and ensure active management of public debt, will accelerate structural transformation. |
| Since 2014, Côte d’Ivoire has had regular access to international bond markets, with its latest Eurobond issue in January 2024 raising $2.6 billion at an average yield of 6.61%. In addition, it has also benefited from a €400 million partial credit guarantee from the African Development Bank, which raised €533 million in sustainable financing on favourable terms. Reforming the global financial architecture should enable the country to benefit from more guarantees, mobilize more innovative financing (green funds, sustainable bonds, thematic bonds) on advantageous terms and increase private investment. |
| For the full document click the link below:
Republic of Côte d’Ivoire: Economic Outlook & GDP |
