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Country risk of Togo : Economy

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

Togo was enjoying dynamic economic performances until the Covid-19 halted this trend. According to IMF estimates, Togo’s GDP grew by a modest 1.8% in 2020, impacted by the lockdown measures and the collapse of trade. Economic activity recovered in 2021, GDP growth reaching 4.8%, and an acceleration is expected for 2022 (5.9%) and 2023 (6.1%) (IMF). This performance will mainly be driven by agriculture, phosphate exports, and port traffic.

The country has implemented a USD 70 million plan to respond to the coronavirus pandemic. Decreased revenues and increased spending deteriorated public finances. Budget deficit soared from -0.9% GDP in 2019 to -6.9% GDP in 2020, and remained high in 2021 (-5.9%) (Coface). It is expected to narrow slightly to -5% GDP in 2022, due to the recovery of economic activity at the port of Lomé, which accounts for 60% of government revenue (Coface). Public debt continued to increase to reach 62.9% GDP in 2021, and is expected to slowly reduce to 62.6% GDP in 2022 and 61.6% GDP in 2023 as fiscal consolidation efforts are resumed (IMF). Estimated at 1.8% in 2020, inflation increased to 2.7% in 2021 due to higher food and oil prices, and is expected to decrease to 2.5% in 2022 and 2.2% in 2023, remaining well below the WAEMU’s criterion. The authorities are pursuing the USD 7.8 billion National Development Plan 2018-2022, which focuses on infrastructure, logistics, natural resources and food processing, as well as inclusion and social development. Committed to structural reforms, the country has also expressed its interest in an Extended Credit Facility (ECF) program from the IMF.

According to the World Bank, 62% of the workforce have been affected by the effects of the pandemic, the most impacted sectors being services and agriculture. In 2020, the unemployment rate in the country was at 4% (ILO Estimate). The poverty level is twice as high in rural areas (58.8%) than in urban areas (26.5%) and only 46.9% of the population has access to electricity (World Bank).

 

Indicator of Economic Freedom

Definition:

The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

 
 
Country Risk
See the country risk analysis provided by Coface.
Main Online Newspapers
Togo Press
Togo Web
Le Togolais
Ici Lome
Useful Resources
Ministry of Finance
Ministry of Foreign Affairs
Ministry of Justice
Ministry of Territorial Administration
Ministry of Defense
Central Bank of West African States (BCEAO)

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Latest Update: November 2022