Ivory Coast poverty de­clines, macroe­co­nomic im­bal­ances cur­tailed: IMF

The Pak Banker - - COMPANIES/BOSS -

An IMF staff team led by Dan Ghura, vis­ited Abid­jan, from Fe­bru­ary 29 to March 15 for the 2016 Ar­ti­cle IV con­sul­ta­tion dis­cus­sions with the au­thor­i­ties.

At the con­clu­sion of the mis­sion, Mr. Ghura said, "over the past four years eco­nomic per­for­mance un­der the au­thor­i­ties' pro­gram, sup­ported by an Ar­range­ment un­der the Ex­tended Credit Fa­cil­ity, has been im­pres­sive. GDP growth has been ro­bust, per­mit­ting a de­cline in poverty, and macroe­co­nomic im­bal­ances have been cur­tailed." "Eco­nomic ac­tiv­ity re­mained buoy- ant in 2015 in most sec­tors. Our pre­lim­i­nary es­ti­mates in­di­cate that real GDP growth was 8.6 per­cent, while in­fla­tion re­mained sub­dued. An ex­ter­nal cur­rent ac­count deficit was reg­is­tered, as the dy­namism of im­ports more than com­pen­sated the in­crease in ex­ports, but re­mained at a man­age­able 1.7 per­cent of GDP. The over­all fis­cal deficit was 3.0 per­cent of GDP com­pared to a tar­get of 3.7 per­cent in the re­vised 2015 Bud­get Law, mainly due to un­der-ex­e­cu­tion of cap­i­tal ex­pen­di­tures and higher-than-bud­geted pro­ceeds from the sale of tele­com li­censes.

"Against the back­drop of ac­commo- dat­ing fi­nanc­ing con­di­tions and ris­ing busi­ness and con­sumer con­fi­dence, bank credit to the pri­vate sec­tor ac­cel­er­ated in 2015, af­ter strong in­creases the two pre­ced­ing years, con­tribut­ing to a de­cline in over­all banks' cap­i­tal ad­e­quacy ra­tio.

"The macroe­co­nomic out­look for 2016 and the medium term re­main fa­vor­able. Real GDP growth is pro­jected at 8.5 per­cent, with low in­fla­tion.

"Staff sup­ports the broad ob­jec­tives and re­forms un­der­ly­ing the Na­tional De­vel­op­ment Plan for 2016-20 (NDP) as well as the lead­ing role of the pri­vate sec­tor to foster struc­tural trans­for­ma­tion. The mis­sion made rec­om­men­da­tions aimed at en­sur­ing that the NDP can be im­ple­mented with­out dis­rup­tion in the face of pos­si­ble ad­verse shocks, in­clud­ing from in­ter­na­tional com­mod­ity prices and tighter fi­nanc­ing con­di­tions. In this con­text, sus­tain­ing strong eco­nomic per­for­mance will re­quire main­tain­ing a dis­ci­plined fis­cal pol­icy and in­creas­ing banks' cap­i­tal in or­der to build suf­fi­cient buf­fers to al­low for the con­duct of counter-cycli­cal pol­icy in the event of the ma­te­ri­al­iza­tion of th­ese risks, as well as to pre­serve debt sus­tain­abil­ity. The mis­sion high­lighted the im­por­tance of in­creased rev­enue mo­bi­liza­tion by ra­tio­nal­iz­ing ex­emp­tions and broad­en­ing the tax base, con­tin­u­ing a pru­dent debt pol­icy, and care­fully mon­i­tor­ing of as­so­ci­ated risks linked to pub­lic-pri­vate part­ner­ships."

The Ex­ec­u­tive Board of the IMF is ex­pected to con­sider the staff re­port for the Ar­ti­cle IV con­sul­ta­tion in May 2016. Au­thor­i­ties have re­quested Fund sup­port for a new pro­gram. Dis­cus­sions on that mat­ter are planned for later this year.

"The IMF mis­sion wishes to ex­press its grat­i­tude to the Ivorien au­thor­i­ties for the con­struc­tive dis­cus­sions and their hos­pi­tal­ity dur­ing its visit to Abid­jan."

The mis­sion had dis­cus­sions with H.E. Mr. Alas­sane Ou­at­tara, Pres­i­dent of the Re­pub­lic of Côte d'Ivoire; H.E. Mr. Daniel Kablan Dun­can, Prime Min­is­ter and Min­is­ter of Econ­omy, Fi­nance and Bud­get; Mr. Adama Kone, Min­is­ter at the Prime Min­is­ter's Of­fice in charge of Econ­omy and Fi­nance; Mr. Ab­dourah­mane Cisse, Min­is­ter at the Prime Min­is­ter's Of­fice in charge of the Bud­get and State As­sets; Mr. Philippe Serey Eif­fel, Min­is­ter and Sec­re­tary Gen­eral at the Pres­i­dency, in charge of ma­jor projects; Mr. Thierry Tanoh, Min­is­ter and Sec­re­tary Gen­eral at the Pres­i­dency and donor com­mu­ni­ties.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.