IMF, for the second time this year, scales up its forecast for Togo’s economic growth

Economic governance
Thursday, 12 September 2019 17:27
IMF, for the second time this year, scales up its forecast for Togo’s economic growth

(Togo First) - For the second time this year, the International Monetary Fund (IMF) has scaled up its growth forecast for the Togolese economy.

From 5% to 5.1% in March, the Bretton Woods institution now projects the figure at 5.3% by the end of the year.

“After considerable slowing in 2017 amid socio-political tensions, economic activity regained momentum in 2018 and maintained this momentum throughout the first half of 2019. Economic growth should slightly accelerate, from 4.9% in 2018 to 5.3% in 2019,” recently declared Ivohasina Fizara Razafimahefa, head of the IMF delegation which was in Lomé between August 28 and September 10, in the framework of the fifth review of Togo’s economic performance under a program supported by an Extended Credit Facility (ECF) arrangement.

The IMF lauds “the significant budgetary efforts started in 2017” and “sustained till end-June 2019.” It also declared satisfactory the country’s debt collection level and overall expenditures which were lower than expected.

“If current policies are sustained in the second half of 2019, Togo will be meeting, for the third consecutive year, WAEMU’s 3% standard for the budget deficit to GDP ratio,” adds the mission while also praising the Gnassingbé government for improving its business climate.  

“Pursuing efforts in this area [Ed note: business climate] will be key to achieving goals set under the national development plan and help foster inclusive economic growth.”

Taking this into account, the IMF forecasts economic growth at 5.5% in 2020 (0.1% less than the government’s projection). Let’s recall that Togo eyes an economic growth of 7.6% by 2022.

Ayi Renaud Dossavi

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