Sign in Subscribe
Economic growth

Cote d'Ivoire's Economic Growth Shows Resilience Amid Global Shocks

Strategic Insights

— 2 min read

Cote d'Ivoire's economy has demonstrated remarkable resilience in the face of global shocks, with economic growth reaching 6% in 2024, outpacing the global average of 2.8% and the regional average of 3.2%. Despite the country's progress, it still faces challenges in sustaining its economic transformation and reducing poverty, which has declined from 36.5% to 20% of the population, yet remains above the 2030 target. The World Bank's latest economic update emphasizes the need for Cote d'Ivoire to strengthen its domestic resource mobilization through tax reforms, which would enable the country to finance public services, infrastructure, and investments in human capital.

Key Takeaways:

  • Cote d'Ivoire's economic growth of 6% in 2024 is above the global (2.8%) and regional (3.2%) averages, supported by private investment, dynamic services, and contained inflation at 3.5%.
  • The country has improved its fiscal deficit, reducing it from 5.2% in 2023 to 4% in 2024, and maintains a sustainable public debt rate of around 60% of GDP.
  • Poverty has declined significantly, but reducing it to 20% by 2030 requires more inclusive growth, focusing on productivity, job creation, and tax revenue mobilization.
  • Raising the tax-to-GDP ratio beyond 15% could increase the country's annual economic growth by 1 to 2 points, financing critical investments in education, health, infrastructure, and social programs.
  • The medium-term economic outlook remains favorable, with growth expected to reach 6.2% in 2025 and 6.4% on average through 2027, driven by hydrocarbons, services, and private investment sectors.
  • However, significant risks remain, including geopolitical instability, climate change, trade tensions, and developments in development assistance.
  • The World Bank's report highlights the importance of transforming the growth model based on productivity, human capital, private investment, and efficient taxation to build a more inclusive, competitive, and sustainable economy.

Statistics:

  • Economic growth: 6% in 2024 (compared to global average of 2.8% and regional average of 3.2%)
  • Inflation rate: 3.5%
  • Fiscal deficit: 4% in 2024 (down from 5.2% in 2023)
  • Public debt: around 60% of GDP
  • Tax-to-GDP ratio: 14% in 2024 (rising from 11.9% in 2019)
  • Poverty rate: 20% of the population (down from 36.5%)
  • Projected economic growth: 6.2% in 2025, 6.4% on average through 2027

Sources:

  • World Bank Group's press release
  • World Bank's report "Tax Revenue Mobilization: A Catalyst for Productivity and Economic Transformation"
  • World Bank's biannual series on the economic situation in Cote d'Ivoire

Read more