Economy: a growth forecast of 6.4% for 2024, according to the Prime Minister

2023-11-20 10:09:58

• Inflation rate : goes from 14.1% in 2022 to 1.2% in 2023

• Growth rate: increases from 1.2% in 2022 to 4.4% in 2023

• Soon taxes on imported fabrics

After a year of management of state affairs, led by the power of Captain Ibrahim Traoré, the Burkinabè economy is doing quite well, despite the unprecedented security and humanitarian impacts since 2015. This observation is from the Prime Minister, Me Apollinaire Kyelem of Tambèla. Taking advantage of the traditional rise of colors in the Prime Minister’s Office, on Monday November 6, 2023, he was incisive on the fact that his government has managed to control the inflation rate, everything, he said, which augurs a return at an acceptable growth rate.

The indicators are green

In one year of governance, the head of the Executive reveals that his government has managed to control the inflation rate. He emphasizes that “the inflation rate which was 14.1% in 2022 is 1.2% in 2023”. A feat that he attributes to the incentive policy of supporting local products. For example, from January to August 2023, state ministries and institutions injected the sum of more than 65 billion FCFA into the purchase of local products. As a result of this local consumption policy, Me Apollinaire Kyelem from Tambèla reveals the drop in product prices on the market.

Controlling inflation has had a positive impact on the growth rate. This is how the growth rate which was 1.2% in 2022 rose to 4.4% in 2023, notes the Head of the Executive. Better, he says, the growth forecast for 2024 is 6.4%. In view of these green indicators, Me Apollinaire Kyelem of Tambèla indicates that the economic difficulties that some people predict would not be worse than before. Still in the policy of consuming local, he recalled the process of generalization of Faso Danfani.

The first step in this process is its wearing by students in major regions of the country for the 2023-2024 school year. In order to protect the local economy, which creates jobs and national wealth, the government of transition plans, in the coming days, to impose taxes on imported fabrics.

Ambéternifa Crépin SOMDA

Boxed

Rate of 6% in 2024, the Prime Minister’s optimism?

Primo: on a progressive stability of the security situation. And for good reason, the Head of State, Captain Ibrahim Traoré, 1 year after coming to power, has not deviated from his vision on how to defeat terrorism, how to wage war and more war.

To achieve this, it has allocated a substantial budget in 2023, amounting to more than 600 billion FCFA. Added to this is the war effort established on certain luxury products, with a patriotic contribution from certain Burkinabè. Consequence, acquisition of substantial war equipment (drones, tanks, sufficient weapons and ammunition, mopeds, etc.).

Second: a security lull which promises a good 2023-2024 agricultural season, with the return of internally displaced people to their respective villages. To strengthen this resilience, the transitional government launched the Presidential Initiative for Agricultural Production (IPPA) 2023-2024 for the agricultural campaign, which will allow production of around 190,000 tonnes of cereals and vegetables on more than 11,000 hectares.

Third: the mining sector, the leading provider of foreign currency for State revenues, evolved in 2023, in a peaceful climate. Anything that promises good mining production for the benefit of the country’s Treasury. This good production will increase with the good news taken by the government on November 8, 2023, by authorizing the withdrawal of operating permits for the Perkoa, Guiro, Yéou and Kalsaka mines to transfer them to new investors. Their entry into production in 2024 will lead to the creation of jobs, but above all national wealth.

Box 2

The World Bank announces a growth rate of 4.3% in 2023, 4.8% in 2024 and 5.1% in 2025

UThe growth of these indicators put forward by the Prime Minister and the World Bank forecasts are significantly approximate. And for good reason, the World Bank’s annual report, “Note on the economic situation in Burkina Faso”, published in April 2023, mentioned that real GDP growth should reach 4.3% in 2023, 4.8% in 2024 and 5.1% in 2025. Growth, according to the authors of the report, which should accelerate in 2024 and 2025, thanks to private investment, and especially in the hypothesis of a return to civilian rule, which will contribute on average 2.8 percentage points to growth over the period 2024-2025. In 2023, private consumption is expected to be the main driver of growth, followed by public consumption, due to the continued increase in public spending.