Macro economics : Cote d’Ivoire

Contents:
1-GDP and GDP growth rate
2-Inflation
3-fiscal policy
4-monetary policy
 1- GDP
• GDP or gross domestic product is the market
value of all final goods produce within
economy during a stipulated period.
• Its an indicator of economic activity of the
country
• GDP is composed by the participation of
different sectors as agriculture , services and
industry
 Context of Cote d’Ivoire
• The Gross Domestic Product (GDP) in Ivory Coast was worth 24.07
billion US dollars in 2011. The GDP value of Ivory Coast represents
0.04 percent of the world economy.

• From 1960 until 2011, Ivory Coast GDP averaged 8.8 USD Billion
reaching an all time high of 24.1 USD Billion in December of 2011
and a record low of 0.6 USD Billion in December of 1960.

•GDP - composition by sector: 

agriculture: 30% 
industry: 21% 
services: 49% (2011 est.)
GDP of Cote d’Ivoire
Cote d’Ivoire’s GDP annual growth rate
• The Gross Domestic Product (GDP) in Ivory Coast expanded 8.60
percent in 2012 from the previous year. GDP Annual Growth Rate in
Ivory Coast is reported by the Central Bank of West African States.
• From 1961 until 2012, Ivory Coast GDP Annual Growth Rate averaged
3.65 Percent reaching an all time high of 17.61 Percent in December of
1964 and a record low of -10.96 Percent in December of 1980.
• Agriculture has been the backbone of the economy. Cote d’Ivoire is
the largest cocoa producer in the world (30 percent of the world’s
production), big exporter of coffee and palm oil.
• The country also has significant offshore oil and natural gas reserves,
which exploration has already boosted government revenues.
Moreover, government increasing investment in education and
infrastructure resulted in the development of manufacturing industry
Growth Rate of Cote D’Ivoire
 2- Inflation
• Inflation is a general rises of price over a period of time leading
to a decrease of purchasing power and the value of money

• Causes of inflation
demand pull inflation
aggregate demand > aggregate supply
cost push inflation
government expenditure > government revenue
rise of Money supply- low interest rate-rise of aggregate
demand- rise of income
Cote d’Ivoire context
 Fiscal policy
• Fiscal policy is set of rules placed in order to
control and maintain the economy

• It usually plays on influencing macro economic

productivity level by increasing or decreasing
taxes and government expenditures.
 Fiscal policy of Cote d’Ivoire 2011
• (i) increase revenues by expanding the tax base
and making tax administration more efficient; and
• (ii) control current expenditures, in particular the
wage bill. The government is targeting an overall
fiscal deficit (as defined in the attached technical
memorandum of understanding) of 4.4 percent of
GDP in 2012, and a further reduction in 2013–14.
• Aim : increase public investment while keeping
the publicdebt sustainable. (2011-14)
 Monetary policy
• Its related to the management of money by
central bank.
• Côte d’Ivoire is the largest economy in the
West African Economic and Monetary Union.
After years of political instability and
economic decline the country has been steady
growing.
The benchmark interest rate in Ivory Coast was
last recorded at 3.75 percent.
from 2010 until 2013, Ivory Coast Interest Rate
averaged 4.15 Percent reaching an all time
high of 4.25 Percent in May of 2012 and a
record low of 3.75 Percent in March of 2013.
 Monetary policy
• The Central Bank of West African States' monetary policy committee
increased growth expectations and held its benchmark interest rate at
4% at a meeting in Dakar on December 7.
• The committee estimates GDP growth in the West African Monetary
Union in 2012 will reach 5.8%, 50 basis points higher than its
prediction three months ago. Efforts by member states to increase
investment in agriculture and infrastructure have helped to yield the
improved production, the committee said, and growth is expected to
accelerate further to 6.5% in 2013.
• Year-on-year inflation rose from 2.1% in June to 2.7% at the end of
September, which the committee attributed in part to the upward
adjustment of fuel prices in some member states. However, it expects
average annual inflation of 2.3% in 2012, against 3.8% in 2011.
 References
• www.worldbank.com
• ww.centralbanking.com/central-
banking/official-record/2231259/central-bank-
of-west-african-states-boosts-growth-
estimates
Thanks