In its monthly statistics bulletin for the third quarter of 2020, the Central Bank of West African States (Bceao) mentioned economic activity in the Union. According to the issuing institute, economic activity in WAEMU increased slightly in the third quarter of 2020, with a 0.6% increase in GDP compared to the same period of 2019, after a drop of 2.0% a quarter earlier.

The return to positive territory of economic growth in the Union was mainly driven by the primary sector, whose added value increased by 1.6% in the third quarter of 2020, after an increase of 1.5% in the previous quarter. The tertiary and secondary sectors recorded moderate increases of 0.1% and 1.0% respectively, after drops of 3.0% and 2.8% a quarter earlier.

The inflation rate in WAEMU, at an annual rate, stood at 2.9% at the end of September 2020, after reaching 1.8% at the end of June 2020. The acceleration in the rate of increase in the general level of price is influenced in particular by the “Food” component, whose contribution to headline inflation stood at 2.2 percentage points at the end of September 2020, after 1.3 percentage points at the end of June 2020.

The rise in the prices of food products is observed in almost all the countries of the Union, in connection with the increase in the cost of local cereals, fish products, fresh vegetables as well as tubers and plantains.

This development is explained by the disruption of distribution circuits in the context of the Covid-19 pandemic against a background of contraction in agricultural production in 2019/2020, in particular local cereals in Niger, Burkina and Mali. Breaks in communication channels following the floods observed in some countries during the months of August and September 2020 also contributed to increasing pressure on food prices.