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Economy: Top 10 of the most indebted countries in West Africa in 2024

11/11/2024
Source : ORISHAS FINANCE
Categories: Sectors

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Public debt continues to grow for many West African countries. This poses challenges in terms of economic development and stability

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The latest IMF data shows that Ghana, Senegal, and Guinea-Bissau have higher debt levels. Indeed, at the top of the ranking, the Ghana has a debt ratio reaching 82.51% of its Gross Domestic Product (GDP). This position reflects de premier pays le plus endetté de l' Afrique de l' Ouest the economic pressures associated with a depreciated currency and recurring budget deficits, which impose severe financial constraints. Egrave; res in the country. For its part, Senegal has a debt equivalent to 84.34% of its GDP. These figures are explained in part by the country's major investments in infrastructure, although Senegal is counting on the development of its energy sector to gradually reduce its debt level. In third position is Guinea-Bissau, with a debt of 77.04% of its GDP, ranking third. The poor diversification of its economy and its political instability complicate the management of public debt, accentuating the country's budgetary difficulties

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Togo comes next with a debt ratio of 69.74%. Togo's efforts to modernize its infrastructure and diversify its economy have led to an increase in debt, requiring careful management to limit its effects on the national economy. Ivory Coast comes in fifth position with a debt/GDP ratio of 59.28%. Despite sustained growth in recent years, debt remains high due to financing needs for development projects and structural reforms. Burkina Faso follows Côte d'Ivoire with a public debt representing 57.36% of its GDP. Security and economic challenges weigh on its budget and constrain the management of its public debt, limiting the resources available for other sectors

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Mali, Benin, Niger and Nigeria follow the pack with 55.72%, 53.98%, 51.65%, and 51.28% of GDP respectively. Nigeria must deal with debt management to prevent it from affecting its economic stability and growth prospects.

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