Despite an economic and financial environment marked by a sharp slowdown in growth, economic activity in the Union was well oriented during 2019. The analysis is of the Bceao in its 2019 annual activity report.

According to the document consulted by the Journal de l'économie malienne (Lejecom), the gross domestic product of waeMU is estimated at 6.6% in 2019, as in 2018, against 3.3% for sub-Saharan Africa. Internally, the BCEAO points out that economies have benefited from an overall favourable socio-political environment and an improving business climate.

Economic activity has also benefited from continued investment in socio-economic infrastructure by WAEMU member states. The annual average inflation rate was -0.7% in 2019 against 1.2% in 2018. At the level of public finances, reveals the issuing institution, the overall deficit, based on commitments, including grants at the end of December 2019, was contained at 2,349.9 billion, or 3.0% of GDP against 2,758.7 billion or 3.8% of GDP in 2018.

This decrease, it is explained, reflects an improvement in revenue collection, combined with better control of public expenditure, particularly current expenditure.

The current account deficit increased by 1.7% to 4,686.5 billion, due to the worsening of the deficit in the balance of goods (+15.4%), in connection with the acquisition of capital and intermediate goods as well as consumer goods.

"In total, the external trade of the WAEMU countries resulted in an overall surplus of 1,659.4 billion in 2019, after a surplus of 1,088.2 billion a year earlier.

This development is linked to the increase in net capital inflows into the financial account, the level of which largely covered the current account deficit," the report reads.

The net external assets of monetary institutions increased by 1,940.1 billion to 7,315.2 billion at the end of December 2019. This development is explained by the increase of 1,687.9 billion in the net external assets of the Central Bank and 252.2 billion in those of the banks.

"The official foreign exchange reserves of the Bceao increased by 1,795.9 billion to 10,357.0 billion at the end of December 2019, in connection with the significant mobilization of external resources by States and the improvement of the profile of the repatriation of export earnings. Repatriations of external resources by States amounted to 4,765.0 billion," reveals the Bceao.

As a result, the coverage rate of the Central Bank's monetary issue improved to 78.4% from 77.1% in December 2018, which covers 5.7 months of imports of goods and services.