In 2016, economic and financial operations between the WAEMU and the rest of the world recorded a wider balance payment deficit which stood at CFA951.2 billion; thus a significant rise compared to 2015 when this figure stood at CFA191.5 billion. This poor performance, in spite of improved current operations, is to be attributed, for the most part, to a pronounced deterioration of financial account balance, and a little to a slight decrease of primary revenues (-0.2% of GDP).

Indeed, despite the fact that net flows of capital transactions recorded a surplus of CFA1191.4 billion against CFA1158.1 billion in 2015 and that funding needs slumped by 415.7 billion CFA to CFA1630 billion, only 41.6% of these needs were met by net capital inflows. Recalling that this ratio exceeded 90% in 2015, this is a drastic drop which had quite a bad impact on payment balance.

In detail, portfolio investments slumped by 34.5%, due to the non-solicitation of international capital markets in the year reviewed; a 18.8% decrease in foreign direct investments, mainly in the oil sector, driven by uncertainties gliding over prices. Accumulation of foreign commercial debts has also contributed to the under-performance of the financial account of all countries in the integration zone.

These situations have significantly impaired performances of current and trade balances which, nevertheless, improved over the reference period.

Fiacre E. Kakpo