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Economic activity: The AfDB forecasts an increase in Burkina's GDP

23/09/2021
Categories: Economy/Forex

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Despite the Covid-19 crisis, the African Development Bank (AfDB) forecasts a rebound in economic activity in Burkina for the next two years. However, these performances will have to be supported by a structural transformation of the economy.

In the country diagnostic note published on September 13 by the AfDB, the Gross Domestic Product (GDP) should increase to 5.1% in 2021-2022 and 5.2% in 2022-2023. The financial institution recommends improving productivity in sectors where the country has significant productive potential. It recommends improving the contribution of the industrial sector (mainly the manufacturing industry) to Burkina's GDP. This could result in the creation of umbrella organizations bringing together all of the players in the craft industry with the aim of encouraging the formalization of craft production units and the protection of craft works. Indeed, the use of modern cultivation techniques is “indispensable” to move from extensive agriculture to intensive agriculture with high productivity. The mechanization of the agricultural sector will not only make it possible to improve yields but also to set up raw material processing units in order to increase local added value.

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