IMF: Ivory Coast to grow at 7% in 2017-19, leading other frontier markets
The IMF (International Monetary Fund) has approved the disbursal of approximately $134 million in credit to Ivory Coast for its economic programs. According to a report dated June 19, “the country’s economic outlook remains strong, with growth projected at about 7 percent in 2017–19.”
With such lofty projections, Ivory Coast leads frontier market (FM) (FRN) economies for 2017-2018 according to the IMF (see chart above). Another area where Ivory Coast counts among the leaders in Africa is mobile network internet connection.
Nominal GDP to rise by 42% by 2020
According to Mitsuhiro Furusawa, IMF Deputy Managing Director and Acting Chair of the Board, “Côte d’Ivoire’s performance under its Fund-supported program has been satisfactory……. The authorities have appropriately responded to the challenges by lowering the regulated cocoa producer price and adopting fiscal adjustment measures that aim to limit the fiscal deficit to 4.5% of GDP in 2017.”
Based on projections for economic indicators for this African (ZAR) (GAF) (AFK) country, released together by the IMF, growth in Ivory Coast over the next 2-3 years is expected to be driven by:
- Rise in nominal GDP from the estimated $36 billion for 2017 to a projected $51 billion by 2020; a rise by ~42% over three years
- A steep rise in exports, indicating an expected rise in production
- A parallel rise in imports, partly spurred by rising demand for inputs of production
- Decline in government expenditure, as part of the country’s fiscal consolidation program
- Rise in central government revenue, providing support to the government’s current fiscal situation
- Reduction in the economy’s current account deficit
- Rise in gross investment by both, the central government and the private sector
- Decline in public sector debt along with rising savings in the economy
