The International Monetary Fund (IMF) Executive Board has completed the third review under the Extended Credit Facility (ECF) arrangement for Burkina Faso. This decision allows for an immediate disbursement of SDR 24.08 million, approximately US$32.8 million, increasing the total IMF financial support to SDR 96.32 million or about US$131.3 million.
In 2024, Burkina Faso's real GDP growth was estimated at 5.0 percent, driven by strong performances in agriculture and services sectors, despite contractions in mining and manufacturing. For 2025, GDP growth is projected to average 4.2 percent due to expected moderation in agricultural output linked to typical rainfall conditions. Inflation is anticipated to decrease to 3.0 percent amid stabilizing food prices.
The balance of payments showed improvement with a positive shift in terms of trade. The current account deficit increased from 5.0 percent of GDP in 2023 to 5.7 percent in 2024 but is expected to reduce to 3.4 percent in 2025 owing to high gold prices.
Fiscal performance was affected by elevated capital spending in 2024; however, the overall fiscal deficit narrowed from 6.7 percent of GDP in 2023 to 5.8 percent in 2024. The fiscal policy is set for tightening in the upcoming year, with a projected fiscal deficit between 3.3 and 4.0 percent of GDP depending on external concessional financing availability.
Progress under the ECF arrangement has been satisfactory overall despite missing some performance criteria due to late-2024 fiscal pressures: "Due to fiscal pressures in late 2024, the end-December performance criteria (PCs) on the primary fiscal deficit and net domestic financing were missed by 0.6 percent of GDP," while other criteria were met or narrowly missed.
Burkina Faso's authorities have made advancements in their structural reform agenda within the program framework: "They met seven out of eight structural benchmarks (SBs) and have addressed the missed SB on the preparation of the clearance plan for domestic arrears as a prior action for the third review."
Mr. Kenji Okamura, Deputy Managing Director and Acting Chair at IMF stated: “Burkina Faso’s economy has proven resilient notwithstanding security challenges, a difficult humanitarian situation, and weather shocks...The authorities are on track and have expanded their structural reform agenda, focusing on fiscal governance and transparency.”
The Burkinabè government remains committed to reducing its overall fiscal deficit while ensuring social spending aimed at poverty reduction continues: “This commitment is reflected in the 2025 budget and fiscal performance through end-March.”