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Abstract
Economic performance in the WAEMU has improved considerably since the devaluation of the CFA franc in 1994. The growth of output has increased rapidly and now exceeds population growth by a substantial margin, exports and investment have recovered strongly, and budgetary and external imbalances have narrowed. Moreover, after a brief surge in the aftermath of the devaluation, inflation has returned to low levels. However, while the ratio of investment to GDP has risen since 1994, it remains low by the standards of other developing countries and even in comparison with other countries of sub–Saharan Africa, thus raising some questions about the sustainability of strong growth.
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