GhanaInflationInsightsMacroeconomic update

23 March 2023

The Same Storm, Different Boats : West African Economic & Monetary Union (WAEMU)

In brief

  • The political situation in the WAEMU region is diverse, with elevated security risks underpinned by militant centres in the Sahelian zone of the region.
  • Amidst global and regional shocks, WAEMU exhibited relatively robust growth, averaging 5.1% over 2018 – 2022.
  • Inflation, traditionally below 3%, is at over 2x the medium-term target limit (FY2022: 7.4%) due to external shocks amidst internal security issues.
  • Fiscal deficit, initially driven by public investment, has deviated from its convergence path, rising from 3.3% of GDP in 2018 to 6% in 2022, due to the measures implemented by the States to curb the consequences of the external and domestic shocks.
  • However, the region’s growth prospects remain favourable, with support from emerging hydrocarbon production and potential IMF-supported reforms in key economies such as Cote d’Ivoire and Senegal.

We use cookies to improve and customize your experience on our site. If you accept cookies, we’ll also use them to show you personalized ads when you visit other sites.Manage cookies and learn more