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- GDP (PPP):
- $35.8 billion
- 6.1% growth
- 3.7% 5-year compound annual growth
- $2,199 per capita
- Inflation (CPI):
- FDI Inflow:
Mali has undertaken some significant reforms to diversify its economy and reduce rural poverty. Tax administration has been improved, and the cotton markets are moving toward privatization. Restraints on government spending and relatively stable monetary policy have allowed space for a growing entrepreneurial sector.
Substantial strides in other areas are needed to ensure significant poverty reduction and long-run economic growth. While Mali encourages foreign and domestic investment in theory, dynamic private-sector growth is impeded by the perception of widespread corruption, poor infrastructure, and regional instability. Rigid labor regulations hurt job growth, and the underdeveloped financial sector limits access to finance, hampering investment.
After President Amadou Toumani Touré was ousted in a March 2012 military coup, Tuareg separatists and al-Qaeda–linked militants took control of northern Mali and declared independence. French armed forces restored government control in the major cities in January 2013, and former Prime Minister Ibrahim Boubacar Keita won the presidency in a second round of balloting in August. In June 2015, the government signed a peace accord with an alliance of Tuareg separatist groups, but clashes between the separatists and pro-government militias soon resumed. French troops remain in the country along with a U.N. peacekeeping operation that has suffered more peacekeepers killed than any other current U.N. peacekeeping mission.
Property rights are not always adequately protected. The judicial system is inefficient and prone to corruption. Pervasive government corruption was a factor in the short-lived Islamist takeover in northern Mali. State authority in parts of the North is still tenuous, and corruption remains a problem throughout the government, public procurement, and both public and private contracting, where demands for bribes are frequently reported.
The top individual income tax rate is 40 percent, and the top corporate tax rate is 35 percent. Other taxes include a value-added tax. The overall tax burden equals 15.3 percent of total domestic income. Government spending has amounted to 20 percent of total output (GDP) over the past three years, and budget deficits have averaged 2.4 percent of GDP. Public debt is equivalent to 36.3 percent of GDP.
Despite some progress, the regulatory framework does not encourage much-needed economic diversification or private-sector development efficiently. Labor regulations, although not fully enforced, are relatively rigid. The government has eliminated fuel subsidies through market pricing. In the electricity sector, subsidies have been reduced by de facto rate increases, but significant untargeted subsidies remain in effect.
Trade is important to Mali’s economy; the value of exports and imports taken together equals 51 percent of GDP. The average applied tariff rate is 7.4 percent. In general, the law treats foreign and domestic investment equally, but state-owned enterprises distort the economy. Mali has an underdeveloped financial sector. Financial intermediation of transactions is relatively rare, and limited access to financing hampers entrepreneurial activity.