Togo passes IMF credit tests despite weaker economy

12 Apr 18

Togo has met all the criteria for its extended credit facility from the International Monetary Fund despite economic activity having weakened in the second half of last year.

A report, published after a visit led by IMF official Ivohasina Razafimahefa, said this weakening followed “sociopolitical unrest”.

The IMF said growth had fallen to 4.4% from 5.1% in 2016 but the public debt-to-GDP ratio had continued to decline “following the strong fiscal consolidation initiated by the government “.

Strict control of public spending saw a deficit equivalent to 4% of Togo’s GDP in 2016 turned into a 1% surplus last year.

Razafimahefa said: “The sociopolitical tensions pose a risk to the economic outlook, adversely impacting the real economy and fiscal revenue. Economic growth is projected at slightly below 5% in 2018.

“In the future, the recent upgrading of public infrastructure is expected to boost productivity and motivate private investment.”

The Togolese government plans to diversify the tax base and intensify revenue collection efforts to correct a revenue shortfall, the IMF noted.

IMF officials also urged Togo to further improve its business climate and encourage private investments.

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