Economic Outline

Economic Indicators

Côte d'Ivoire’s  economy proved resilient to the Covid-19 pandemic, and is amongst the fastest growing economies in Sub-Saharan Africa. After reaching 6.7% in 2022, GDP growth stood at an estimated 6.2% in 2023, primarily driven by private consumption, the surge aligns with efforts to bolster purchasing power, expand industrial development initiatives, and enhance agricultural output, notably cocoa, with an increased government-guaranteed price set for the 2022-2023 season. In 2024, economic activity is expected to sustain its robust momentum, largely driven by the surge in industrial activities and supported by moderating inflation and increased global demand. Public investment, notably in infrastructure and public facilities, will remain elevated, in line with the objectives outlined in the National Development Plan (NDP, 2021-2025). The IMF forecasts growth at 6.6% this year and 6.4% in 2025.

Despite the gradual narrowing of the public deficit, it is projected to persist above the West African Economic and Monetary Union's (WAEMU) recommended target of 3% of GDP in both 2023 and 2024. To alleviate the effects of increasing prices on household purchasing power, social spending remained substantial in 2023. However, it is anticipated to decrease in 2024 due to easing inflationary pressures and the government's aim to substitute subsidies (primarily on food and fuel) with targeted financial aid for the most economically vulnerable households. Nonetheless, the multitude of public investment initiatives will sustain expenditure levels. Fitch Ratings estimated the budget deficit to have narrowed to 5.3% of GDP in 2023 from 6.8% in 2022, with a further reduction expected this year (4.4%) and in 2025 (3.5%). Public debt remained stable in 2023 (56.8%), still well above its pre-pandemic level of 38%, but should decrease over the medium term amid budget consolidation and strong GDP growth. Inflationary pressure are expected to ease in 2024 to 2.3%, down from 4.3% in 2023, returning below the regional target of 3% set by the BCEAO.

Despite good economic performance, the poverty rate grew sharply compared to its level three decades ago. More than 40% of the population lives under the poverty threshold, and around a quarter of the working population remains unemployed. Unemployment rate was estimated by the World Bank at 2.5% in 2022; however, around 40% of theworkforce is employed in the informal sector.

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