Burkina Faso

ECONOMICS

Burkina Faso is a poor, landlocked country that depends on adequate rainfall. Irregular patterns of rainfall, poor soil, and the lack of adequate communications and other infrastructure contribute to the economy’s vulnerability to external shocks. About 80% of the population is engaged in subsistence farming and cotton is the main cash crop. The country has few natural resources and a weak industrial base.
Cotton and gold are Burkina Faso’s key exports - gold has accounted for about three-quarters of the country’s total export revenues. Burkina Faso’s economic growth and revenue depends largely on production levels and global prices for the two commodities. The country has seen an upswing in gold exploration, production, and exports.
In 2016, the government adopted a new development strategy, set forth in the 2016-2020 National Plan for Economic and Social Development, that aims to reduce poverty, build human capital, and to satisfy basic needs. A new three-year IMF program (2018-2020), approved in 2018, will allow the government to reduce the budget deficit and preserve critical spending on social services and priority public investments.
While the end of the political crisis has allowed Burkina Faso’s economy to resume positive growth, the country’s fragile security situation could put these gains at risk. Political insecurity in neighboring Mali, unreliable energy supplies, and poor transportation links pose long-term challenges.

 

 

1990 2000 2010 2016
GNI, Atlas method (current US$) (billions) 2.92 2.86 8.83 11.7
GNI per capita, Atlas method (current US$) 330 250 570 610
GNI, PPP (current international $) (billions) 4.8 9.79 21.19 34.77
GNI per capita, PPP (current international $) 540 840 1,360 1,810
GDP (current US$) (billions) 3.1 2.63 8.98 12.87
GDP growth (annual %) -0.6 1.8 5.4 6.7
Inflation, GDP deflator (annual %) 1.8 -0.8 6.8 3.4
Agriculture, forestry, and fishing, value added (% of GDP) 28 31 33 28
Industry (including construction), value added (% of GDP) 20 20 21 21
Exports of goods and services (% of GDP) 11 10 19 28
Imports of goods and services (% of GDP) 24 25 30 34
Gross capital formation (% of GDP) 19 20 27 26
Revenue, excluding grants (% of GDP) .. 11.7 15.3 18.1
Net lending (+) / net borrowing (-) (% of GDP) .. -4.6 -4.5 -3.5
States and markets
Time required to start a business (days) .. 40 14 13
Domestic credit provided by financial sector (% of GDP) 12.2 14.3 16.5 31.6
Tax revenue (% of GDP) .. 10.9 12.7 15.8
Military expenditure (% of GDP) 2.7 1.4 1.4 1.4
Mobile cellular subscriptions (per 100 people) 0 0.2 36.6 93.5
Individuals using the Internet (% of population) 0 0.1 2.4 14
High-technology exports (% of manufactured exports) .. 3 8 4
Statistical Capacity score (Overall average) .. .. 62 73
Global links
Merchandise trade (% of GDP) 22 31 41 45
Net barter terms of trade index (2000 = 100) 119 100 124 145
External debt stocks, total (DOD, current US$) (millions) 834 1,438 2,148 2,825
Total debt service (% of exports of goods, services and primary income) 9.4 19 2.5 4.4
Net migration (thousands) -150 -125 -125 -125
Personal remittances, received (current US$) (millions) 140 67 120 444
Foreign direct investment, net inflows (BoP, current US$) (millions) 0 23 39 390