Abstract
IMF Country Report No. 23/102
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IMF Country Report No. 23/102
WEST AFRICAN ECONOMIC AND MONETARY UNION
STAFF REPORT ON COMMON POLICIES FOR MEMBER COUNTRIES—PRESS RELEASE; STAFF REPORT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR THE WAEMU
February 2023
This staff report on discussions with regional institutions of the West African Economic and Monetary Union (WAEMU) was prepared by a staff team of the International Monetary Fund in the context of the periodic regional surveillance of the WAEMU. The regional perspective of such discussions is intended to strengthen the bilateral consultations that the IMF holds with the members in the region under Article IV of the IMF's Articles of Agreement. The following documents have been released and are included in the package:
A Press Release summarizing the views of the Executive Board as expressed during its February 1, 2023, consideration of the staff report.
The Staff Report prepared by a staff team of the IMF for the Executive Board's consideration on February 1, 2023, following discussions that ended on November 16, 2022. Based on information available at the time of these discussions, the staff report was completed on January 17, 2023.
A Statement by the Executive Director for the WAEMU member countries.
The IMF's transparency policy allows for the deletion of market-sensitive information and premature disclosure of the authorities' policy intentions in published staff reports and other documents.
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© 2023 International Monetary Fund
Press Release
PRESS RELEASE
PR23/39
IMF Executive Board Concludes the 2022 Discussions on Common Policies of Member Countries of the West African Economic and Monetary Union
FOR IMMEDIATE RELEASE
The WAEMU's post-Covid-19 recovery has withstood the new global and regional shocks, partly due to supportive macroeconomic policies and favorable initial macroeconomic conditions. Growth prospects remain favorable and the financial system appears resilient.
However, the WAEMU faces important risks and challenges associated with rising inflation, more limited access to international capital markets, eroding external reserve buffers, and regional security issues, in the presence of elevated global risks.
It is urgent to design a credible fiscal strategy anchoring debt sustainability, based on clear and adequate deficit and debt regional ceilings. Further monetary tightening seems warranted unless large risks that second-round effects may derail inflation dissipate.
Washington, DC – February 9, 2023: On February 1, 2023, the Executive Board of the International Monetary Fund (IMF) concluded the 2022 discussions on common policies of member-countries of the West African Economic and Monetary Union (WAEMU).1
The WAEMU's post-Covid-19 recovery has been moderately affected by the new global and regional shocks partly due to a further delay in fiscal adjustment. In 2022, growth is estimated to have reached 51/2 percent, inflation averaged 7.5 percent mainly due to higher local and global food prices, and external reserves declined by about 20 percent to reach the equivalent of 4.5 months of imports. Against this background, monetary policy changed course through three consecutive rate hikes of 25 basis points in 2022.
Growth is expected to rebound to about 6 percent over the medium term, including due to the coming on stream of new hydrocarbon production and inflation is projected to return to the BCEAO's target band by the end-2024. A gradual fiscal consolidation should start in 2023 and bring the aggregate fiscal deficit to 3 percent of GDP by 2025 at the latest. There are however significant downside risks to the outlook, particularly given the volatile global economic and financial outlook, as well as regional security risks and political uncertainty.
Executive Board Assessment2
The views expressed by Executive Directors today will form part of the Article IV consultations with individual member-countries that take place until the next Board discussion of WAEMU common policies that will be held on the 12-month cycle in accordance with the Executive Board decision on the modalities for surveillance over WAEMU policies.
Executive Directors agreed with the thrust of the staff appraisal. They noted the WAEMU's economy has shown resilience to global shocks, with supportive policies and a favorable initial macroeconomic environment helping the recovery. However, fiscal and external positions weakened, and inflationary pressures intensified. Directors cautioned that, while economic prospects remain favorable in the medium term, risks are tilted to the downside, particularly from volatile global economic and financial conditions, regional security issues and political uncertainty. They stressed the importance of a prudent fiscal and monetary policy mix and structural reforms to maintain macroeconomic and financial stability and foster inclusive growth.
Directors urged the authorities to reintroduce the regional fiscal rules and adopt a credible medium-term fiscal framework to ensure fiscal sustainability and preserve external viability. They considered that any justifiable delay of the envisaged convergence of fiscal deficits to 3 percent of GDP in 2024 should be limited to one year and supported by reasonable financing expectations. Directors emphasized that it will be critical to enhance domestic revenue mobilization and public financial management and control stock-flow adjustment operations to preserve debt sustainability while protecting priority spending.
Directors called on the authorities to stand ready to further tighten monetary policy as needed to contain inflationary pressures and, together with tighter fiscal policies, help strengthen external reserve adequacy.
Directors noted the financial system remains broadly sound but is subject to risks from the increased exposure of some banks to sovereigns and refinancing from the BCEAO. They emphasized the importance of efforts to finalize the operationalization of the bank resolution framework, introduce “targeted” Pillar 2 capital surcharges and liquidity requirements, enhance supervisory independence, and implement an emergency liquidity assistance scheme. Directors concurred that enhancing the depth and liquidity of the sovereign security market remained a priority. They encouraged the authorities to enhance AML/CFT supervision and assess climate-related risks in the financial sector in line with the 2022 FSAP recommendations.
Directors agreed that WAEMU member-countries' growth prospects would benefit from more robust structural reforms, regional trade integration, and greater coordination and pooled resources to implement regional development projects, particularly in the areas of energy, digital and physical infrastructure, and food resilience.
The views expressed by Executive Directors today will form part of the Article IV consultations with individual member-countries that take place until the next Board discussion of WAEMU common policies. It is expected that the next regional consultation with the WAEMU will be held on the standard 12-month cycle.
WAEMU: Selected Economic and Social Indicators, 2019–27
Shows data from the IMF Country Report No. 2022/067, issued in January 2022 (Board document number SM/22/9).
The acceleration in GDP growth in 2023/24 is due to the start of production of large hydrocarbon projects in Niger and Senegal.
Excluding intraregional trade.
Data for 2021 includes the 2021 SDR allocation which is equivalent to US$2,327 million, or 0.6 months of imports and 9.6 percent of the BCEAO's sight liabilities.
WAEMU: Selected Economic and Social Indicators, 2019–27
| Social Indicators | |||||||||||
| GDP | Poverty (2019 or latest available) | ||||||||||
| Nominal GDP (2021, millions of US Dollars) | 178,720 | Headcount ratio at $1.90 a day (2011 PPP) | 22.0 | ||||||||
| GDP per capita (2021, US Dollars) | 1,322 | Undernourishment (percent of population) | 12.3 | ||||||||
| Population characteristics | Inequality (2018 or latest available) | ||||||||||
| Total (2020, millions) | 130.9 | Income share held by highest 10 percent of population | 31.1 | ||||||||
| Urban Population (2020, percent of total) | 40.4 | Income share held by lowest 20 percent of population | 6.9 | ||||||||
| Life expectancy at birth (2020, years) | 61.7 | Gini index | 39.1 | ||||||||
| Economic Indicators | |||||||||||
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | |||
| SM/22/91 | Est. | SM/22/91 | Proj. | Projected | |||||||
| (Annual percentage changes) | |||||||||||
| National income and prices | |||||||||||
| GDP at constant prices2 | 5.7 | 1.8 | 5.7 | 5.9 | 6.1 | 5.1 | 6.2 | 7.3 | 5.9 | 5.7 | 5.7 |
| GDP per capita at constant prices | 2.8 | -1.0 | 2.8 | 3.0 | 3.1 | 2.2 | 3.3 | 4.4 | 3.0 | 2.8 | 2.8 |
| Consumer prices (average) | -0.7 | 2.1 | 3.3 | 3.6 | 2.5 | 7.5 | 3.3 | 2.0 | 1.9 | 1.9 | 2.0 |
| Terms of trade | -3.0 | 23.5 | -3.1 | -6.5 | -1.7 | -8.7 | -0.5 | 1.2 | 0.1 | -0.5 | -0.2 |
| Nominal effective exchange rate | -0.5 | 3.7 | … | 1.3 | … | … | … | … | … | … | … |
| Real effective exchange rate | -3.7 | 3.7 | … | 1.1 | … | … | … | … | … | … | … |
| (Percent of GDP) | |||||||||||
| National accounts | |||||||||||
| Gross national savings | 19.3 | 20.9 | 19.5 | 21.3 | 20.1 | 20.9 | 22.0 | 23.7 | 22.7 | 22.9 | 23.4 |
| Gross domestic investment | 24.3 | 24.9 | 25.4 | 27.4 | 25.9 | 29.0 | 29.0 | 28.7 | 27.4 | 27.4 | 27.8 |
| Of which: public investment | 6.1 | 7.0 | 7.5 | 7.3 | 7.8 | 7.6 | 7.7 | 7.7 | 6.9 | 7.0 | 7.0 |
| (Annual changes in percent of beginning-of-period broad money) | |||||||||||
| Money and credit | |||||||||||
| Net foreign assets | 6.6 | 0.7 | 2.5 | 6.0 | -0.1 | -8.0 | 0.1 | 0.9 | 2.0 | 2.3 | 1.7 |
| Net domestic assets | 3.7 | 15.9 | 5.5 | 2.2 | 8.0 | 17.8 | 8.7 | 8.6 | 6.0 | 5.4 | 5.9 |
| Broad money | 10.3 | 16.5 | 8.0 | 8.1 | 8.0 | 9.9 | 8.8 | 9.5 | 8.0 | 7.7 | 7.7 |
| Credit to the economy | 4.2 | 4.1 | 2.6 | 0.6 | 2.5 | 12.2 | 1.4 | 4.1 | 3.7 | 3.2 | 3.9 |
| (Percent of GDP, unless otherwise indicated) | |||||||||||
| Government financial operations | |||||||||||
| Government total revenue, excl. grants | 15.6 | 15.2 | 15.3 | 16.2 | 15.9 | 15.7 | 16.1 | 17.0 | 17.2 | 17.3 | 17.5 |
| Government expenditure | 19.7 | 22.8 | 22.9 | 23.3 | 22.4 | 23.4 | 22.6 | 22.3 | 21.5 | 21.6 | 21.8 |
| Overall fiscal balance, excl. grants | -4.1 | -7.6 | -7.6 | -7.1 | -6.5 | -7.6 | -6.5 | -5.3 | -4.3 | -4.3 | -4.3 |
| Overall fiscal balance, incl. grants | -2.3 | -5.6 | -5.9 | -5.6 | -4.7 | -6.0 | -5.0 | -4.0 | -3.0 | -3.0 | -3.0 |
| External sector | |||||||||||
| Exports of goods and services 3 | 19.7 | 19.1 | 18.9 | 19.1 | 19.9 | 19.3 | 18.3 | 19.3 | 18.8 | 18.7 | 18.7 |
| Imports of goods and services 3 | 25.4 | 24.1 | 25.8 | 26.2 | 26.6 | 27.6 | 25.4 | 24.4 | 23.5 | 23.2 | 23.2 |
| Current account, excl. grants | -6.0 | -5.3 | -6.8 | -7.0 | -6.8 | -8.5 | -7.1 | -5.1 | -4.8 | -4.6 | -4.6 |
| Current account, incl. grants | -4.9 | -4.0 | -5.9 | -6.2 | -5.9 | -7.7 | -6.4 | -4.4 | -4.1 | -4.0 | -4.0 |
| External public debt | 30.4 | 33.7 | 36.4 | 36.5 | 35.1 | 34.6 | 32.9 | 30.8 | 29.2 | 27.8 | 26.9 |
| Total public debt | 45.2 | 51.9 | 55.6 | 57.1 | 55.5 | 56.8 | 56.6 | 54.9 | 53.1 | 51.5 | 50.4 |
| Broad money | 34.2 | 38.6 | 38.6 | 38.6 | … | … | … | … | … | … | … |
| Memorandum items: | |||||||||||
| Nominal GDP (billions of CFA francs) | 88,607 | 91,608 | 98,891 | 99,054 | 106,762 | 108,834 | 118,459 | 129,680 | 140,050 | 150,824 | 162,363 |
| Nominal GDP per capita (US dollars) | 1,186 | 1,214 | 1,332 | 1,322 | 1,394 | 1,263 | 1,298 | 1,383 | 1,454 | 1,525 | 1,599 |
| CFA franc per US dollars, average | 585.9 | 574.8 | … | 554.2 | … | … | … | … | … | … | … |
| Gross international reserves 4 | |||||||||||
| In months of next year's imports (of goods and services) | 5.6 | 5.4 | 5.8 | 5.6 | 5.5 | 4.5 | 4.4 | 4.3 | 4.4 | 4.5 | 4.6 |
| In percent of current GDP | 11.7 | 12.8 | … | 14.2 | … | 10.4 | 9.7 | 9.2 | 9.2 | 9.4 | 9.4 |
| In percent of the BCEAO's sight liabilities | 81.4 | 77.3 | … | 79.3 | … | 63.2 | 66.9 | 63.5 | 63.8 | 65.0 | 64.7 |
| In millions of US dollars | 17,547 | 21,764 | 24,228 | 24,194 | 24,898 | 18,490 | 17,938 | 18,668 | 20,373 | 22,531 | 24,130 |
Shows data from the IMF Country Report No. 2022/067, issued in January 2022 (Board document number SM/22/9).
The acceleration in GDP growth in 2023/24 is due to the start of production of large hydrocarbon projects in Niger and Senegal.
Excluding intraregional trade.
Data for 2021 includes the 2021 SDR allocation which is equivalent to US$2,327 million, or 0.6 months of imports and 9.6 percent of the BCEAO's sight liabilities.
WAEMU: Selected Economic and Social Indicators, 2019–27
| Social Indicators | |||||||||||
| GDP | Poverty (2019 or latest available) | ||||||||||
| Nominal GDP (2021, millions of US Dollars) | 178,720 | Headcount ratio at $1.90 a day (2011 PPP) | 22.0 | ||||||||
| GDP per capita (2021, US Dollars) | 1,322 | Undernourishment (percent of population) | 12.3 | ||||||||
| Population characteristics | Inequality (2018 or latest available) | ||||||||||
| Total (2020, millions) | 130.9 | Income share held by highest 10 percent of population | 31.1 | ||||||||
| Urban Population (2020, percent of total) | 40.4 | Income share held by lowest 20 percent of population | 6.9 | ||||||||
| Life expectancy at birth (2020, years) | 61.7 | Gini index | 39.1 | ||||||||
| Economic Indicators | |||||||||||
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | |||
| SM/22/91 | Est. | SM/22/91 | Proj. | Projected | |||||||
| (Annual percentage changes) | |||||||||||
| National income and prices | |||||||||||
| GDP at constant prices2 | 5.7 | 1.8 | 5.7 | 5.9 | 6.1 | 5.1 | 6.2 | 7.3 | 5.9 | 5.7 | 5.7 |
| GDP per capita at constant prices | 2.8 | -1.0 | 2.8 | 3.0 | 3.1 | 2.2 | 3.3 | 4.4 | 3.0 | 2.8 | 2.8 |
| Consumer prices (average) | -0.7 | 2.1 | 3.3 | 3.6 | 2.5 | 7.5 | 3.3 | 2.0 | 1.9 | 1.9 | 2.0 |
| Terms of trade | -3.0 | 23.5 | -3.1 | -6.5 | -1.7 | -8.7 | -0.5 | 1.2 | 0.1 | -0.5 | -0.2 |
| Nominal effective exchange rate | -0.5 | 3.7 | … | 1.3 | … | … | … | … | … | … | … |
| Real effective exchange rate | -3.7 | 3.7 | … | 1.1 | … | … | … | … | … | … | … |
| (Percent of GDP) | |||||||||||
| National accounts | |||||||||||
| Gross national savings | 19.3 | 20.9 | 19.5 | 21.3 | 20.1 | 20.9 | 22.0 | 23.7 | 22.7 | 22.9 | 23.4 |
| Gross domestic investment | 24.3 | 24.9 | 25.4 | 27.4 | 25.9 | 29.0 | 29.0 | 28.7 | 27.4 | 27.4 | 27.8 |
| Of which: public investment | 6.1 | 7.0 | 7.5 | 7.3 | 7.8 | 7.6 | 7.7 | 7.7 | 6.9 | 7.0 | 7.0 |
| (Annual changes in percent of beginning-of-period broad money) | |||||||||||
| Money and credit | |||||||||||
| Net foreign assets | 6.6 | 0.7 | 2.5 | 6.0 | -0.1 | -8.0 | 0.1 | 0.9 | 2.0 | 2.3 | 1.7 |
| Net domestic assets | 3.7 | 15.9 | 5.5 | 2.2 | 8.0 | 17.8 | 8.7 | 8.6 | 6.0 | 5.4 | 5.9 |
| Broad money | 10.3 | 16.5 | 8.0 | 8.1 | 8.0 | 9.9 | 8.8 | 9.5 | 8.0 | 7.7 | 7.7 |
| Credit to the economy | 4.2 | 4.1 | 2.6 | 0.6 | 2.5 | 12.2 | 1.4 | 4.1 | 3.7 | 3.2 | 3.9 |
| (Percent of GDP, unless otherwise indicated) | |||||||||||
| Government financial operations | |||||||||||
| Government total revenue, excl. grants | 15.6 | 15.2 | 15.3 | 16.2 | 15.9 | 15.7 | 16.1 | 17.0 | 17.2 | 17.3 | 17.5 |
| Government expenditure | 19.7 | 22.8 | 22.9 | 23.3 | 22.4 | 23.4 | 22.6 | 22.3 | 21.5 | 21.6 | 21.8 |
| Overall fiscal balance, excl. grants | -4.1 | -7.6 | -7.6 | -7.1 | -6.5 | -7.6 | -6.5 | -5.3 | -4.3 | -4.3 | -4.3 |
| Overall fiscal balance, incl. grants | -2.3 | -5.6 | -5.9 | -5.6 | -4.7 | -6.0 | -5.0 | -4.0 | -3.0 | -3.0 | -3.0 |
| External sector | |||||||||||
| Exports of goods and services 3 | 19.7 | 19.1 | 18.9 | 19.1 | 19.9 | 19.3 | 18.3 | 19.3 | 18.8 | 18.7 | 18.7 |
| Imports of goods and services 3 | 25.4 | 24.1 | 25.8 | 26.2 | 26.6 | 27.6 | 25.4 | 24.4 | 23.5 | 23.2 | 23.2 |
| Current account, excl. grants | -6.0 | -5.3 | -6.8 | -7.0 | -6.8 | -8.5 | -7.1 | -5.1 | -4.8 | -4.6 | -4.6 |
| Current account, incl. grants | -4.9 | -4.0 | -5.9 | -6.2 | -5.9 | -7.7 | -6.4 | -4.4 | -4.1 | -4.0 | -4.0 |
| External public debt | 30.4 | 33.7 | 36.4 | 36.5 | 35.1 | 34.6 | 32.9 | 30.8 | 29.2 | 27.8 | 26.9 |
| Total public debt | 45.2 | 51.9 | 55.6 | 57.1 | 55.5 | 56.8 | 56.6 | 54.9 | 53.1 | 51.5 | 50.4 |
| Broad money | 34.2 | 38.6 | 38.6 | 38.6 | … | … | … | … | … | … | … |
| Memorandum items: | |||||||||||
| Nominal GDP (billions of CFA francs) | 88,607 | 91,608 | 98,891 | 99,054 | 106,762 | 108,834 | 118,459 | 129,680 | 140,050 | 150,824 | 162,363 |
| Nominal GDP per capita (US dollars) | 1,186 | 1,214 | 1,332 | 1,322 | 1,394 | 1,263 | 1,298 | 1,383 | 1,454 | 1,525 | 1,599 |
| CFA franc per US dollars, average | 585.9 | 574.8 | … | 554.2 | … | … | … | … | … | … | … |
| Gross international reserves 4 | |||||||||||
| In months of next year's imports (of goods and services) | 5.6 | 5.4 | 5.8 | 5.6 | 5.5 | 4.5 | 4.4 | 4.3 | 4.4 | 4.5 | 4.6 |
| In percent of current GDP | 11.7 | 12.8 | … | 14.2 | … | 10.4 | 9.7 | 9.2 | 9.2 | 9.4 | 9.4 |
| In percent of the BCEAO's sight liabilities | 81.4 | 77.3 | … | 79.3 | … | 63.2 | 66.9 | 63.5 | 63.8 | 65.0 | 64.7 |
| In millions of US dollars | 17,547 | 21,764 | 24,228 | 24,194 | 24,898 | 18,490 | 17,938 | 18,668 | 20,373 | 22,531 | 24,130 |
Shows data from the IMF Country Report No. 2022/067, issued in January 2022 (Board document number SM/22/9).
The acceleration in GDP growth in 2023/24 is due to the start of production of large hydrocarbon projects in Niger and Senegal.
Excluding intraregional trade.
Data for 2021 includes the 2021 SDR allocation which is equivalent to US$2,327 million, or 0.6 months of imports and 9.6 percent of the BCEAO's sight liabilities.
Title Page
WEST AFRICAN ECONOMIC AND MONETARY UNION
STAFF REPORT ON COMMON POLICIES OF MEMBER COUNTRIES
January 19, 2023
KEY ISSUES
Context. The WAEMU's post-Covid-19 recovery has so far withstood the new global and regional shocks, partly owing to supportive fiscal and monetary policies as well as relatively strong macroeconomic fundamentals over the previous decade. Growth prospects remain favorable, reserves—albeit declining—remain adequate, and the financial system appears to be resilient. However, the region faces important challenges associated with rising inflation, limited access to international capital markets, eroding external buffers, and regional security issues, in the presence of elevated global risks.
Key Policy Recommendations
Fiscal Policy. Continued delay in fiscal consolidation and the recent surge in public debt are affecting fiscal credibility, debt sustainability, and external viability. It is therefore urgent to design a credible fiscal strategy anchoring debt sustainability, based on clear and adequate deficit and debt ceilings. Regional fiscal rules should be reintroduced and revamped, with enhanced supporting elements—a credible fiscal correction mechanism as well as well-designed escape clauses and enforcement mechanisms—complemented by efforts to control all debt-increasing flows (such as below-the-line and extra-budgetary operations). Possible delays in the convergence period beyond 2024 (more specifically, further postponing a return to the 3 percent of GDP deficit rule) should be limited to one year, strongly justified, and financeable. Finally, the composition of the fiscal adjustment should be conducive to inclusive and sustainable economic growth. While there is no doubt the region faces significant spending pressures over the medium term, these should be funded via enhanced domestic revenues efforts rather than debt.
Monetary Policy. Further monetary tightening is warranted given the large one-sided risks (unless these dissipate) that second-round effects may derail inflation and lead it to exceed the BCEAO's target range over a 24-month period. This would also help contain the risk that reserves fall below adequacy thresholds.
Financial Markets. The financial sector has been resilient so far, but the banking sector's growing exposures to the sovereign is a source of vulnerability, and would require capital surcharges targeting concentrated exposures. Traditional (concentration and credit) risks are being managed by recent capital increases, though additional risks from inflation, delayed fiscal consolidation, and declining reserves need careful supervision. Continued policy actions to improve banking supervision and deepen financial markets are essential to foster financial sector development and inclusion. Assessing climate-related risks in the financial sector also remains important.
Structural Reforms. Progress in regional reforms and development projects should be accelerated. Structural reforms to foster productivity growth and private investment are crucial to counteract possible scarring effects of the Covid-shock and facilitate intra-regional transactions, particularly in the areas of energy, digital and physical infrastructure, and food resilience. More coordination and pooled resources to implement regional development projects are essential.
Approved By
Annalisa Fedelino (AFR) Loko Boileau (SPR)
The regional discussions for 2022 were held in a hybrid format comprising virtual video conferences as well as physical meetings during November 1–16, 2022. The staff team comprised Mr. Ricci (Head), Messrs. Feler and Sever (all AFR), Ms. Melo Fernandes (MCM), Ms. Laws (SPR) and Mr. Gudmundsson (RES). The concluding meeting was held on November 16, with BCEAO Governor Brou. Ms. Bentum provided research support and Ms. Jaghori provided assistance in the preparation of the report. The West African Economic and Monetary Union (WAEMU) covers eight countries: Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo.
Contents
GLOSSARY
RECENT DEVELOPMENTS
OUTLOOK AND RISKS
POLICY DISCUSSIONS
A. Fiscal Policy: Ensuring Debt Sustainability and Preserving External Viability
B. Monetary Policy: Anchoring Inflation Expectations and Preserving External Viability
C. Fostering Financial Stability and Inclusion
D. Structural Policies: Supporting Medium and Long-Term Growth
STAFF APPRAISAL
FIGURES
1. Recent Economic Developments
2. Recent Monetary and Financial Sector Developments
3. Medium-Term Prospects
4. Regional Macroeconomic Heterogeneity
TABLES
1. Selected Economic and Social Indicators, 2019-27
2. Selected National Accounts and Inflation Statistics, 2019–27
3. Sub-Saharan Africa: Cross-Group Comparison, 2019–27
4. Selected Fiscal Indicators, 2019-27
5. Balance of Payment, 2019-27
6. Government Public Debt and Debt Service, 2019-27
7. Monetary Survey, 2019-27
8. Financial Soundness Indicators, 2016-22
ANNEXES
I. Authorities Responses to the 2021 Policy Recommendations
II. Risk Assessment Matrix
III. External Sector Assessment
IV. Important Factors for the Monetary Policy Decision-Making Process in the WAEMU
V. Financial Inclusion in the WAEMU
VI. Status of Fund Relations
Glossary
| AML | Anti-money laundering |
| bps | Basis points |
| CAR | Capital adequacy ratio |
| CFT | Countering the financing of terrorism |
| CBDC | Central bank digital currency |
| CFAF | CFA Franc |
| EA | Euro-Area |
| FAIR | Regional Integration Assistance Fund |
| FATF | Financial Action Task Force |
| FDI | Foreign direct investment |
| FRDA | Regional Agricultural Development Fund |
| FRFA | Fixed-rate full allotment |
| NEER | Nominal effective exchange rate |
| MFI | Microfinance institution |
| NIIP | Net international investment position |
| NPL | Non-performing loans |
| PFM | Public financial management |
| PRP | Preventive restructuring plan |
| REER | Real Effective Exchange Rate |
| SFAs | Stock-flow adjustments |
| SIP | Selected Issues Papers |
| SSA | Sub-Saharan Africa |
| USD | U.S. dollar |
| VAT | Value-added tax |
| yoy | Year on year |
Under Article IV of the IMF's Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. Staff hold separate annual discussions with the regional institutions responsible for common policies for the countries in four currency unions – the Euro-Area, the Eastern Caribbean Currency Union, the Central African Economic and Monetary Union, and the West African Economic and Monetary Union. For each of the currency unions, staff teams visit the regional institutions responsible for common policies in the currency union, collect economic and financial information, and discuss with officials the currency union's economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis of discussion by the IMF Executive Board. Both staff's discussions with the regional institutions and the Board discussion of the annual staff report subsequently are considered an integral part of the Article IV consultation with each member.
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.
