In 2016, the current deficit of West African Economic and Monetary Union’s (WAEMU) countries in 2016, stood at 4.8% of the region’s GDP, against 6% the previous year. This is a 1.2% improvement, spurred by a lower trade deficit mainly (+1.5% of GDP). 

The latter is due to lower imports, and more especially to the reduction of the oil bill (-1.1% of GDP) caused by the slump in global oil prices. 

Sectors whose earnings increased the most are those of gold and cashew (+9.4% and 12.8% respectively), favored by their global price levels. However, this trend is somehow mitigated by a slump in earnings from exports of cocoa (-5.6%) and uranium (-12.5%), and re-exports to Nigeria (-20.5%). 

Deficit balance for services has also improved by 0.6% of the GDP, mainly as a result of a decrease of some expenses, and the freight bill’s also. 

Grants excluded, current deficit stood at 5.5% of GDP, against 6.8% a year before, thus 1.3% up.

Fiacre E. Kakpo