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UEMOA: despite Covid, growth at the rendezvous

02/10/2020
Source : Agence Ecofin
Categories: Economy/Forex

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Affected by Covid-19, WAEMU countries are expected to see a significant decline in their growth.

In the zone, "GDP fell by 2.0% in the second quarter of 2020 compared to the same period of the previous year after an increase of 3.2% a quarter earlier," notes the Central Bank of West African States (Bceao), at its third regular meeting.

As noted earlier, this decline in economic activity in the Union " was mainly driven by the tertiary and secondary sectors whose value added fell by 3.4% and 3.6% respectively in the second quarter of 2020."

That being said, according to the Central Bank, despite this sharp decline, growth will still be at the rendezvous, although much weaker than expected at the beginning of the year.

Thus, we should have, in the whole zone, a growth of 1.3% for 2020, nearly 5 percentage points less than the 6.1% of 2019.

It should be noted that the primary sector (agriculture in particular) has been particularly resilient over the past six months. This would explain, in part, the resilience of the Union's economies.

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