It appears from the fourth and last meeting for the year 2020 of the Monetary Policy Committee of the Central Bank of West African States (Bceao) , which was held on December 2, 2020, that the growth rate within the Union for the current year is 0.9% compared to 5.6% in 2019.

For once, the countries of the West African Monetary Union (Umoa) will experience, this year, a growth rate below 1%. For the whole of 2020, it is expected at 0.9% against 5.6% in 2019. This diagnosis is from the Monetary Policy Committee (Cpm) of the Central Bank of East African States Ouest (Bceao) which held its fourth meeting for the year 2020 by videoconference last Wednesday.

This growth rate of 0.9% is a lesser evil in view of the consequences of the Covid-19 pandemic on economic activity in WAEMU, particularly during the first and second quarters. The lifting of mobility restrictions and the effects of the public support policies put in place have made it possible, according to the Bceao , to stop the negative spiral. “Economic activity in WAEMU increased slightly in the third quarter of 2020, in line with the lifting of mobility restrictions and the effects of the public support policies put in place. The GDP of the Union increased by 0.6% compared to the same period of the year 2019, after a drop of 2.0% a quarter earlier”, specifies the press release.

Elhadji Ibrahima THIAM

…………………………………………………………………………………………………………….

The deficit is widening

With regard to the execution of national budgets over the first nine months of 2020, it shows a "worsening of deficits" compared to the same period of the previous year. It is induced by the effects of the pandemic on revenues as well as by the response and recovery measures taken by the States, underlines the Bceao . “Indeed, the budget deficit, on a commitment basis, including grants, amounted to 3,742.1 billion or 5.5% of GDP at the end of September 2020, against 1,576.3 billion or 2.4% of GDP a year earlier. early,” notes the bank.

Eh. I. THIAM

……………………………………………………………………………………………………………

Inflation on the rise

The Committee notes that for the whole of 2020, the inflation rate is projected at 2.2% after -0.7% in 2019. It adds that there will be an acceleration in the rate of increase in the level general prices due to the increase in the cost of local cereals, fish products, fresh vegetables as well as tubers and plantains. “This development is explained by the disruptions in the distribution channels in the context of the Covid-19 pandemic and the drop in cereal production for the 2019/2020 agricultural campaign,” reads the press release.

On the basis of these analyses, the Monetary Policy Committee decided to maintain unchanged the minimum interest rate for bidding liquidity injection tender operations at 2.00% and the interest rate of the marginal lending window at 4.00%, levels in force since 24 June 2020. The reserve requirement coefficient applicable to banks in the Union remains unchanged at 3.0%.