Burkina Faso Economic Outlook
- In 2012 the rate of economic growth should accelerate slightly but will be accompanied by inflationary pressures.
- The improvement of governance and, especially, the strengthening of debt management capabilities are key issues.
- Underemployment and unemployment, which chiefly affect the young, are major challenges.
The slight increases in growth projected for 2012 and 2013 should be mainly driven by mining (gold and manganese), cotton ginning and food production. Investment in infrastructure should also help speed up growth and improve the country’s economic competitiveness while making access to regional and international markets easier. The economy will, nevertheless, still be vulnerable to external shocks, and in particularclimatic conditions (such as poor rainfall), a drop in the price of gold and the steep rise in oil prices. Inflationary pressures should increase in 2012 making control of prices a major challenge to be faced at a time of food crisis. Political determination to fight corruption and the implementation of institutional reforms should contribute to better governance in 2012 and 2013. At the same time accountability mechanisms in respect of the management of public finances and capacity to manage debt need to be strengthened to improve its sustainability.
The level of unemployment is low, at 1.8%, and mainly involves the young and urban populations. Underemployment affects a large part of the population, particularly in the countryside. The poor qualifications and underpayment of workers contribute to a persistence of poverty. To alleviate these problems the country needs to implement policies to ensure that there is a match between training and the needs of the market and to speed up the transformation of the economy to make it possible for the private sector to absorb the flow of job-seekers.
