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- GDP (PPP):
- $36.1 billion
- -4.7% growth
- 1.0% 5-year compound annual growth
- $1,590 per capita
- Inflation (CPI):
- FDI Inflow:
Côte d’Ivoire’s economic freedom score is 54.1, making its economy the 126th freest in the 2013 Index. Its score is 0.2 point lower than last year, with significant improvements in property rights and investment freedom largely offset by declines in the management of public finances and monetary freedom. Côte d’Ivoire is ranked 24th out of 46 countries in the Sub-Saharan Africa region, and its overall score is slightly above the regional average.
The foundations of economic freedom are fragile and uneven across Côte d’Ivoire. Poor protection of property rights and widespread corruption continue to restrain long-term entrepreneurial activity. The rule of law is weak, and courts are subject to political interference and lack the resources needed for the effective enforcement of laws. Lingering social and political instability has undermined economic development.
The government has pursued policies that are intended to favor private-sector development, but results have been meager. Current efforts to strengthen management of public finances and reform outmoded government economic structures have the potential, if implemented determinedly, to foster a more dynamic private sector. Although overall progress in public-sector reform has been slow, the government has maintained its policy of divesting state-owned enterprises.
In 2002, civil war split Côte d’Ivoire between a rebel-controlled North and a government-controlled South. Despite a 2007 peace accord and the presence of U.N. peacekeepers, the country remains in crisis. President Laurent Gbagbo, ousted in April 2011 by French-backed forces, is currently jailed in The Hague, charged with four counts of crimes against humanity for his part in presidential election violence in 2010. Newly elected President Alassane Ouattara received a parliamentary majority in elections held in December 2011. In June 2012, militias and supporters of ex-President Gbagbo were caught in an attempt to overthrow the government.
The rule of law has weakened during nine years of political crisis, but the nation seems more stable since successful elections in 2011. Protection of property rights is fragile. The judiciary is constitutionally independent but remains inefficient and vulnerable to political interference. Anti-corruption laws are not enforced effectively. Government corruption affects customs and tax enforcement and erodes accountability within the security forces.
The top income tax rate is 36 percent, and the top corporate tax rate is 25 percent. Other taxes include a value-added tax (VAT) and a tax on interest. The overall tax burden equals 17 percent of total domestic income. Government spending equals 25.9 percent of total domestic output. Rising expenditures and lower revenues from oil taxation have widened the deficit to more than 5.7 percent of GDP. Public debt has soared to around 90 percent of GDP.
Some improvements have been made in the entrepreneurial framework. The time and number of procedures required to launch a business have been reduced, but minimum capital requirements still cost twice the average level of annual income. The labor market does not function efficiently. Inflation has been modest, but the government regulates the prices of a range of goods and services.
The trade-weighted average tariff rate is 7.3 percent, and non-tariff barriers further inhibit trade. The investment regime does not discriminate against foreign investors, but capital controls and foreign exchange restrictions hinder investment. Some modernization and restructuring of the financial sector was undertaken before the 2011 crisis, but state interference reduces the capacity to sustain more vibrant private-sector activity.