(Ecofin Agency) - Côte d’Ivoire wants to take actions to boost economic resilience and households’ purchasing power in 2023 amid rising inflation that is undermining some economic sectors. To this end, the authorities are counting on an increase in spending but also on tightened budget deficit.  

Côte d’Ivoire announced a XOF11,494 billion (US$16.9 billion) budget for the 2023 fiscal year. The budget was announced at the end of the Ministerial council held last Wednesday, October 12, 2022.

According to the Ivorian authorities, the budget is up by 18.1% compared to the initial 2022 budget and  8.9% higher than the amended one. It mainly aims to provide support to crippled economic sectors and contain the inflationary crisis that has affected the whole West African region for months now. 

"This stance aims to consolidate the current growth of economic activities -6.8% currently, with plans to increase it to 7% in 2023- to preserve the population’s purchasing power and maintain the currently calm social climate,” the government explains. 

The government also forecasts a rise in the 2024 and 2025 budgets to XOF13,072.4 billion (US$19.3 billion) and XOF14,169.6 billion (about US$21 billion) respectively. 

Last year, the country approved its 2021-2025 national development plan, which targets a 7.65% average yearly growth and a 4% rise in investments to reach 27.1% of GDP in 2025. In 2023, authorities expect a drop in the deficit to 4.3% of GDP while this year’s projection is 6% of GDP. 

Moutiou Adjibi Nourou