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Côte d'Ivoire: Surplus of 477.7 billion FCFA in the balance of payments in 2019

15/01/2021
Source : Financial Afrik
Categories: General Information

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After a positive overall balance of 284.6 billion FCFA (426.900 million euros) in 2018, Côte d'Ivoire's external balance of payments ended in 2019 with a surplus of 477.7 billion FCFA. FCFA (716.550 million euros), according to data established by the Central Bank of West African States ( BCEAO ) validated by the Balance of Payments Committee of this country.

This performance was achieved in a context marked by growth in economic activity which was less strong than in 2018. Indeed, the gross domestic product (GDP) recorded, in real terms, an increase of 6.2 %, after 6.9% in 2018.

As for the balance of current transactions, it recorded a deficit of 790.3 billion FCFA (-2.3% of GDP), lower than that of 2018 which was 1,268.9 billion FCFA (-3 .9% of GDP), in relation to the improvement in the trade balance of goods. The surplus balance of the balance of goods thus increased by 50.9%, in connection with the increase, in value, of exports (+779.5 billion) stronger than that of imports (+156.6 billion). The services deficit, for its part, widened by 2.7% in 2019, in connection, in particular, with the increase in the freight of goods, technical services, related to trade and other business services and construction. With regard to the primary income deficit, the BCEAO reports that it worsened by 8.9%, from 904.9 billion FCFA in 2018 to 985.8 billion FCFA in 2019, due to the increase in investment income following the increase in the economy's financial liabilities vis-à-vis foreign countries.

As for secondary income, its deficit increased by 9.2% compared to 2018. “This worsening of the deficit is mainly linked to the increase in personal transfers, mainly funds issued by migrant workers”, explains the BCEAO.

As for the positive balance of the capital account, it improved by 24.4%, thanks to the increase in project grants received by the Public Administration during the year. The financial account shows a negative balance of 1,164.2 billion FCFA, after that of 1,471.1 billion FCFA in 2018. This shows a net, lower increase in the commitments of the Ivorian economy vis-à-vis abroad in 2019 compared to 2018. According to the BCEAO, this development is explained in particular by the decline in inflows of financial inflows for portfolio investments. However, foreign direct investment and other investment increased in 2019 compared to 2018.

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