West Africa will be striving for economic growth against the backdrop of a major pair of twin shocks: the lingering COVID-19 pandemic and the Russia-Ukraine conflict. While GDP is set to decline by 1.2% in Burkina Faso, Mali, Cote d’Ivoire, and Senegal, Niger’s GDP is forecast to increase. As most West African countries are import dependent, the soaring inflation rates both within the sub-region and globally will undoubtedly lead to higher import bills and thus risk eclipsing the level of exports. The challenge for ECOWAS, which forms the financial backbone of the sub-region, will be to try to contain inflation rates low without suppressing inclusive growth.
Source: Invest in Africa Insights
