Washington, June 9, 2022 – According to a new World Bank report released today, Burkina Faso’s economy grew by 7% in 2021, following a 1.9% slowdown in 2020 due to the COVID-19 pandemic. This upturn in growth was largely driven by the services sector and investments in mining, in particular gold and manufacturing. Growth of the Burkinabe economy is expected to continue in 2022, with a projected rate of 4.8%, spurred by private consumption, a modest rebound in agricultural production, and the continued performance of the gold sector.
The poverty rate is projected to have declined in 2021, although the absolute number of persons living in extreme poverty is declining slowly because of the country’s high population growth rate and the nature of the sectors that have driven this growth.
Titled “Resilience in Uncertain Times - Promoting Digital Services,” the report analyzes the impact of the COVID-19 pandemic and climate and security crises on Burkina Faso’s economy. It notes that the short-term outlook is dependent on a host of downside risks, among them rising inflation following global price hikes owing to the Russia-Ukraine conflict. Should these risks be mitigated, growth is expected to be 5.3% over the 2023-2024 period and the rate of extreme poverty should continue to decline in the medium term by roughly one percentage point per year.
“Without a doubt, Burkina Faso has demonstrated resilience in 2021, despite the security and health crises facing the country,” says Maimouna Mbow Fam, World Bank Country Manager for Burkina Faso. “Far-reaching economic reforms and investment in digital infrastructure would enable the country to match or even improve its pre-pandemic growth rate.”
The report notes that the effects of the different crises coupled with structural challenges have had a negative impact on food security and the export bans instituted in response to higher food prices could prove to be ineffective or counterproductive.
Daniel Pajank and Kodzovi Abalo, World Bank economists and co-authors of the report, recommend that “alternatively, the government could consider measures to replenish strategic food stocks, strengthen early warning systems, and make them more transparent and predictable, while outlining collection procedures and, lastly, improve food aid to the most vulnerable, which includes accelerated implementation of the single social register.”
The authors also advocate policy options to improve the macro-fiscal and poverty situation, digital financial services, and more generally digital technologies in order to boost the country’s economic resilience, and create new growth opportunities through productivity gains and greater innovation and inclusion.
In addition, the report recommends specific options for promoting digital technology so that the private sector can expand its role in supporting economic growth and poverty reduction.
