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- GDP (PPP):
- $78.6 billion
- 8.6% growth
- 6.3% 5-year compound annual growth
- $3,316 per capita
- Inflation (CPI):
- FDI Inflow:
Côte d’Ivoire’s economic expansion has been notable, with a robust GDP growth rate averaging around 6 percent over the past five years. The government has undertaken much-needed reforms to maintain and further enhance the potential for growth. These measures include strengthening management of public finances and regulatory reforms to foster the emergence of a more dynamic private sector. Fiscal policy has focused on promoting investment and funding other development needs.
Effective implementation of deeper institutional reforms related to the rule of law remains critical to reinforcing vibrant economic growth. Protection of property rights and anticorruption measures are not enforced effectively, and the judiciary remains vulnerable to political influence.
In 2002, Côte d’Ivoire plunged into a civil war that lasted until peace largely returned in 2007, when rebel leader Guillaume Soro joined President Laurent Gbagbo’s government as prime minister. After the 2010 presidential elections, Gbagbo refused to surrender power to internationally recognized winner Alassane Ouattara. U.N. and French forces removed Gbagbo, who is now facing trial at The Hague on charges of crimes against humanity. Ouattara won a second term in late 2015, and the U.N. plans to withdraw its troops by April 2017. Côte d’Ivoire is West Africa’s second-largest economy and a leading producer of cocoa and cashews.
Protection of property rights is fragile, and land titles are rare outside of urban areas, although the introduction of new alternative dispute resolution mechanisms has made it easier to enforce contracts. The judiciary is not independent, and judges are highly susceptible to external interference and bribes. Corruption persists in the judiciary, the police, the military, customs, contract awards, tax offices, and other government institutions.
The top individual income tax rate is 36 percent, and the top corporate tax rate is 25 percent. Other taxes include a value-added tax and a tax on interest. The overall tax burden equals 15.5 percent of total domestic income. Government spending has amounted to 22.7 percent of total output (GDP) over the past three years, and budget deficits have averaged 2.6 percent of GDP. Public debt is equivalent to 34.7 percent of GDP.
Considerable effort has been made to modernize the regulatory framework. The business start-up process has become more straightforward, and minimum capital requirements have been reduced. The nonsalary cost of employing a worker is relatively low. To lessen dependence on cocoa, the government encourages crop diversification by guaranteeing high prices for other crops while still guaranteeing a minimum price to cocoa farmers.
Trade is important to Côte d’Ivoire’s economy; the value of exports and imports taken together equals 88 percent of GDP. The average applied tariff rate is 6.3 percent. The government does not screen or discriminate against most foreign investment. The financial system is dominated by banking, which, despite some modernization and restructuring, still lacks the capacity to support rapid private-sector growth.