The IMF Executive Board concluded its annual review of common policies for the eight member states, noting that economic growth reached 6.6% in 2025. Inflation declined during the same period, falling below the regional target range from mid-2025, largely due to lower food prices.
External balances also improved. The current account deficit narrowed to 1.7% of gross domestic product in 2025 from 5.7% in 2024, supported by higher export revenues from gold, cocoa and hydrocarbons. Foreign reserves increased, reaching 7.8 months of import cover by February 2026.
The Central Bank of West African States reduced interest rates by 50 basis points since June 2025, reflecting improved inflation trends and stronger external buffers.
Fiscal performance strengthened, with the regional deficit narrowing to 3.4% of gross domestic product (GDP) in 2025, from 5.4% the previous year. Public debt declined from 68% of GDP to an estimated 65%. However, the IMF said debt levels and financing conditions vary across countries, with some facing higher risks.
The IMF noted that increased borrowing in regional markets has raised exposure of banks to government debt, while financial sector vulnerabilities persist. These include high non-performing loans, low capital buffers and uneven performance across member states.
Economic growth is projected to moderate to about 5.5% in 2026 before stabilising at around 6% in the medium term. Inflation is expected to return to target levels in 2026, while foreign reserves are forecast to increase further.
The IMF identified key risks, including the impact of global developments such as conflict in the Middle East, as well as domestic pressures related to public debt, financial stability and security challenges.
The Executive Board called for continued fiscal discipline, improved revenue mobilisation and stronger debt transparency. The IMF also emphasised the need for regional coordination and structural reforms to support inclusive growth.
The IMF said long-term economic performance will depend on deeper integration within the WAEMU, improved governance and efforts to strengthen regional value chains.
–IMF/ChannelAfrica–
