On June 26, 2019, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation1 with Togo. The Board also completed the Fourth Review of Togo’s economic performance under a three-year program supported by the IMF’s Extended Credit Facility (ECF) arrangement; a related press release was issued separately.
Despite bold reforms implemented in recent years, a climate of uncertainty related to sociopolitical tensions and underdeveloped institutions have prevented Togo from fully unlocking its substantial growth potential. Following a sharp deceleration in 2017 due to socio-political tensions, economic growth is estimated to have accelerated to 4.9 percent in 2018 and is expected to approach 5½ percent over the medium term. Headline inflation stood at 2 percent in March 2019 (year-on-year) and is expected to remain below the 3-percent WAEMU convergence criteria in the medium term. The current account deficit was markedly smaller in 2017–18 relative to previous years and is projected to remain in the range of 4–5 percent of GDP. Togo reached the WAEMU fiscal deficit criterion in 2017 and 2018, two years ahead of the timeline agreed by Member States. Debt is declining relative to the level at program approval but remains the highest among the WAEMU countries. Togo’s ability to raise funds in the regional bond market has improved.
Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.
At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summings up can be found here: http://www.imf.org/external/np/sec/misc/qualifiers.htm.