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- GDP (PPP):
- $71.1 billion
- 7.5% growth
- 4.9% 5-year compound annual growth
- $3,131 per capita
- Inflation (CPI):
- FDI Inflow:
Over the past five years, Côte d’Ivoire has made a notable economic transition from fragility to relative stability. Although some root causes of conflict remain, political reconciliation and economic transformation have been strengthened by measures that support territorial development and promote regional cooperation toward integration.
Economic Freedom Snapshot
- 2016 Economic Freedom Score: 60.0 (up 1.5 points)
- Economic Freedom Status: Moderately Free
- Global Ranking: 92nd
- Regional Ranking: 10th in Sub-Saharan Africa
- Notable Successes: Monetary Freedom and Management of Public Finance
- Concerns: Property Rights, Corruption, and Labor Freedom
- Overall Score Change Since 2012: +5.7
Much-delayed economic reforms undertaken to improve Côte d’Ivoire’s macroeconomic stability and growth potential include strengthening the management of public finance and structural reforms to foster a more dynamic private sector. However, a weak judiciary continues to undermine property rights, and the perceived level of corruption is debilitating.
Côte d’Ivoire’s civil war began with a failed coup against President Laurent Gbagbo in 2002 and ended with a cease-fire in 2003. It left the country split between a rebel-controlled North and a government-controlled South. In 2007, rebel leader Guillaume Soro joined 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 eventually removed Gbagbo to The Hague for trial for alleged crimes against humanity committed during the post-election period. Côte d’Ivoire is West Africa’s second-largest economy and a leading producer of cocoa and cashews. A legal dispute with Ghana over oil drilling in the Gulf of Guinea is being heard by the International Tribunal for the Law of the Sea.
Corruption remains endemic, and perpetrators are seldom prosecuted despite an official “zero tolerance” policy. Freedom House reports that 80 percent of all government procurement was awarded in no-bid deals in 2013, up from 40 percent in 2012. The judiciary is not independent, and judges are highly susceptible to external interference and bribes. Protection of property rights is fragile, and land titles are rare outside of urban areas.
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 15.7 percent of total domestic income. Government spending amounts to 22.1 percent of total domestic output. The budget deficit is still over 2 percent of GDP. Public debt equals about 36 percent of total domestic output.
The time and number of procedures required to launch a business have been reduced, but the cost of minimum capital requirements still equals more than twice the average annual income. The labor market is inefficient. The government guarantees a minimum “farmgate” price to cocoa farmers, regulates many other prices, and increased the electricity subsidy in 2015 due to a higher use of heavy vacuum oil by the electricity sector.
Cote d’Ivoire’s average tariff rate is 6.6 percent. The country is a member of the West Africa Economic and Monetary Union. Foreign and domestic investors are treated equally under the law, and there is no general screening of foreign investment. Despite some modernization and restructuring of the financial sector, state intrusiveness reduces the capacity to sustain more vibrant private-sector activity.