OUAGADOUGOU, July 10, 2025 - The World Bank's April 2025 Burkina Faso Economic Update reports a growth in the country's economy by 4.9% in 2024, compared to 3.0% in the previous year. Real per capita GDP growth also saw an increase from 0.7% to 2.5%.
The improvement is largely due to the performance of services and agriculture sectors, supported by better security, favorable weather conditions, and increased government support for agriculture.
Inflation rose to 4.2% in 2024 from 0.7% in the prior year, primarily due to a spike in food prices linked to market speculation and a delayed rainy season start. Despite this inflationary pressure, strong sectoral growth reduced extreme poverty by three points to 23.2%, though over 5.5 million people remain impoverished.
The report highlights improvements in fiscal and current account deficits for 2024, with the fiscal deficit decreasing from 6.5% to 5.6% of GDP due to controlled public spending and enhanced revenue mobilization. The current account deficit improved from 8.0% of GDP in the previous year to 6.4%, aided by rising gold prices boosting export values.
The economic outlook remains positive but faces risks such as insecurity, climate shocks, debt refinancing challenges, and financial sector issues. If these risks diminish, growth could reach around 5%, driven by service sector expansion, industrial recovery through better energy access, and favorable agricultural conditions.
Inflation is expected to stabilize within WAEMU targets while ongoing fiscal consolidation should lead to moderate poverty reduction at about one percentage point annually.
Daniel Pajank and Ibrahim Nana co-authored the report and emphasize "Strengthening the mobilization and efficiency of public resources," suggesting modernization of tax administration and broadening of the tax base.
A special chapter on Energy for Economic Growth assesses Burkina Faso's electricity sector with recommendations aligned with national electrification goals. Hamoud Abdel Wedoud Kamil notes that "Affordable, reliable, and sustainable electricity is essential" for improving productivity across key sectors.
Despite efforts made so far, access to electricity remains limited compared with regional averages—an obstacle impacting inclusive growth opportunities particularly in rural areas.
Co-authors Regina Nesiama Miller and Adwoa Asantewaa stress that "An ambitious reform of the sector" including cost-based pricing reforms would help ensure inclusive growth by reducing vulnerabilities.
Finally addressing structural constraints like high generation costs reliant on imported fuels remains critical for economic transformation according to recommendations outlined within this update.