(Ecofin Agency) - This outlook comes as many of the bloc's members, including Senegal, Côte d'Ivoire and Niger, have announced the start-up of natural gas fields and the commissioning of a pipeline.

The West African Economic and Monetary Union (WAEMU) is expected to achieve economic growth of 5.4% in the second quarter of 2024, up from 5.1% in the previous quarter. This forecast comes from the Central Bank of West African States (BCEAO) in its monthly economic report, released on August 5, 2024.

According to the central bank, this growth is driven by rising domestic demand and continuous improvements in several key sectors, including food crop agriculture, trade, market and non-market services, transportation, and construction. Among these, commercial activities, manufacturing and extractive industries, and financial services are the largest contributors to this positive trend.

BCEAO's optimistic outlook is further supported by recent developments in the region. Several WAEMU member countries, such as Senegal, Côte d'Ivoire, and Niger, have begun exploiting new natural gas fields and operationalizing a petroleum pipeline, boosting their economic potential.

May 2024 data confirms this positive trajectory, with a 0.7% increase in industrial production and a 0.5% rise in retail sales revenue. Market services grew by 2.3%, and financial services saw a 0.8% uptick. The construction sector also showed progress, although setbacks were observed in Mali and Niger, according to the report.

Looking ahead, the BCEAO anticipates continued momentum, forecasting 5.7% growth in the third quarter and an average of 6.1% for the entire year of 2024. However, the WAEMU's outlook remains clouded by uncertainties related to ongoing security and political crises in the region, the institution cautioned.