Burkina Faso, 2021 April Economic Update : Protecting the Poor During the Recovery and Beyond
According to latest estimates, the economy grew by 2.0 percent in 2020, 4 percentage points less than projected before the onset of COVID-19 (coronavirus). The primary sector grew by 5.2 percent, supported by strong performances of subsistence crop...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/en/667441623270219232/Burkina-Faso-Protecting-the-Poor-During-the-Recovery-and-Beyond http://hdl.handle.net/10986/35735 |
| Summary: | According to latest estimates, the
economy grew by 2.0 percent in 2020, 4 percentage points
less than projected before the onset of COVID-19
(coronavirus). The primary sector grew by 5.2 percent,
supported by strong performances of subsistence crops and
cotton.. The tertiary sector, the largest component of the
economy, contracted by 4.9 percent on account of COVID-19
social distancing measures. Inflation returned to positive
territory in 2020 and closed the year above 4 percent. The
pandemic had a positive impact on the external sector and a
negative impact on the fiscal accounts. In 2020, the trade
balance improved by 1.0 percentage point of GDP supported by
historically high gold prices and low oil prices. The
structurally negative services balance improved by 0.3
percentage points of GDP on account of cheaper electricity
imports from neighboring countries. The fiscal deficit as a
share of GDP reached 5.2 percent in 2020, an increase from
3.2 percent in 2019. Public debt stood at 47.6 percent of
GDP by end-2020. Although many impacts of the COVID-19 shock
persist, the economy is projected to continue its recovery
in 2021. On the demand side, the recovery is supported by
consumption and private investment. With security,
humanitarian, health, and social challenges
persistingthroughout the year, the fiscal deficit is
projected to remain elevated at 5.2 percent of GDP. As
concessional funding is finite and no other funding options
are available, the Government will have to resort to more
expensive borrowing in the regional market, which will shift
the composition of the public debt stock towards a majority
share of domestic debt. |
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