The report from the BCEAO, published on Monday, August 5, 2024, forecasts that the West African Economic and Monetary Union (UEMOA) is expected to experience an economic growth of 5.4% in the second quarter of 2024, a slight increase from the 5.1% rate recorded in the previous quarter. This performance is largely attributed to robust domestic demand, supported by significant advancements in strategic sectors such as food agriculture, trade, both market and non-market services, transportation, as well as construction and public works (BTP). In particular, the sectors of trade, manufacturing and extractive industries, as well as financial services have stood out for their substantial contribution to this growth dynamic.
This economic improvement occurs in a favorable context marked by the launch of new natural gas operations and an oil pipeline in several UEMOA countries, notably Senegal, Côte d'Ivoire, and Niger, thereby strengthening the region's development potential. The figures from May 2024 corroborate this trend with a 0.7% increase in industrial production and a 0.5% rise in retail sales. Market services recorded a growth of 2.3%, while financial services progressed by 0.8%.
However, the construction sector, although progressing, has experienced notable slowdowns in Mali and Niger. Nevertheless, the BCEAO expects this positive dynamic to continue with a projected growth of 5.7% in the third quarter of 2024 and an annual average of 6.1% for the entire year. However, these favorable prospects remain marred by persistent uncertainties related to security and political crises that continue to weigh on the economic stability of the region.
Source: Ecofin Agency, MEPD Web Portal Editorial Team
