During its third ordinary meeting for the year 2021, the Monetary Policy Committee (CPM) of the Central Bank of West African States (BCEAO) reviewed the main developments in the economic situation. international and regional. This meeting held on Wednesday, September 8, 2021, by videoconference lifted a corner of the veil on the execution of financial operations of WAEMU member states.

Examining the execution of the financial operations of the WAEMU Member States, during the first six months of the year 2021, the Committee noted an attenuation of the overall budget deficit, with reference to the same period of the previous year. The budget deficit, on a commitment basis, including grants, stood at 4.6% of GDP against 5.4% a year earlier. The Committee noted a strong increase in global economic activity in the second quarter of 2021. On international markets, commodity prices continued to strengthen for the fourth consecutive quarter under the effect of the recovery in demand at globally, the improving economic outlook, as well as the persistence of supply-side constraints. The price index of non-energy raw materials exported by WAEMU countries increased by 2.7% during the second quarter of 2021, after an increase of 5.1%, a quarter earlier.

The Monetary Policy Committee noted an increase in the inflation rate in the face of the acceleration in consumer prices. The inflation rate stood at 3.3% in the second quarter of 2021 against 2.2% a quarter earlier. The underlying inflation rate also rose, standing at 2.7%, after 1.9% a quarter earlier. Thanks to the consolidation of the recovery of economic activity in the Union, the Committee forecasts sustained economic growth of 5.4% in 2021 and then 6.4% in 2022.