Ivory Coast is one of the dynamically developing countries with high economic growth rates. Infrastructure modernization is being actively carried out in the country, the share of the middle class is growing, although the problem of poverty is still acutely felt.
There is an improvement in business conditions, as well as strengthening the level of public administration. The country is rich in natural resources, including agricultural and hydrocarbon. Ivory Coast also has large reserves of precious metals.
The COVID-19 pandemic has significantly reduced the growth rate of the country's economy to 2.0% in 2020. However, the anti-crisis measures taken by the government made it possible to resume high growth rates, which in 2021 amounted to 7.0%, which demonstrates the stability of the economy in conditions of global instability. Nevertheless, GDP growth in 2022, according to the IMF estimates, will decline again and amount to 5.5%, which is associated with the consequences of a slowdown in the global economy, tightening monetary policy in developed countries and the associated increase in borrowing costs. In addition, the jump in world prices for food, energy and fuel has increased price pressure in Côte d'Ivoire. This is expected to continue in the near future and affect consumer spending and economic growth. Nevertheless, growth rates will remain high in the long term due to improved macroeconomic conditions, an expanding industrial base and efforts to implement investor-friendly reforms.
The main driving forces in 2021 were the secondary and tertiary sectors of the economy, while the primary sector showed more modest, albeit stable results. In the structure of GDP, the service sector accounts for 42.1%, while agriculture and industry accounted for 21.4% and 20.9%, respectively.
According to the IMF, inflation began to accelerate significantly in 2020, reaching 2.4%. In 2021, inflation continued to rise and reached 4.2% due to an increase in food prices.
Further growth in world prices for food, energy and fuel, according to estimates, has led to an even greater increase in inflation, the level of which in 2022 is estimated at 5.5%. In October 2022, the annual inflation rate fell to 6.2% from a more than 11-year high of 6.3% in the previous month. Prices decreased mainly for food and soft drinks.
The observed level of inflation will be reflected in lower real consumer spending. Thus, increased price pressure is expected to be another factor restraining growth this year.
Nevertheless, the normalization of production costs will lead to a reduction in inflationary pressure to 4.0% in 2023, according to IMF forecasts, or to 3.8%, according to Oxford Economics.
Economic development targets, according to the 2030 development plan: average income growth up to $4,000 by the beginning of the next decade, GDP per capita growth rate — 7% per year, GDP growth rate — 10% per year, population growth rate — 3% per year, poverty reduction to 20% of the population by 2030, an increase in the share of the educated young population by 30% compared to 2020, an increase in the share of the employed population by 55% compared to 2020.
