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- GDP (PPP):
- $87.8 billion
- 8.6% growth
- 8.9% 5-year compound annual growth
- $3,609 per capita
- Inflation (CPI):
- FDI Inflow:
Côte d’Ivoire’s economic freedom score is 62.0, making its economy the 85th freest in the 2018 Index. Its overall score has decreased by 1.0 point, primarily because of declines in fiscal health, property rights, and labor freedom. Côte d’Ivoire is ranked 6th among 47 countries in the Sub-Saharan Africa region, and its overall score is above the regional and world averages.
To maintain Côte d’Ivoire’s enviable record of economic expansion, the government plans additional pro-market reforms, including streamlining of bureaucratic procedures to cut business costs and support small and medium-size enterprises. Fiscal policy has focused on promoting investment and funding other development needs. Although progress may slow in advance of the 2020 presidential election, implementation of deeper institutional reforms to strengthen the rule of law, depoliticize the judiciary, fight corruption, and protect property rights will be critical to reinforcing vibrant economic growth.
Following independence in 1960, cocoa and cashew exports made Côte d’Ivoire West Africa’s second-largest economy, but this was not enough to prevent political turmoil. A North–South civil war raged from 1999 to 2007, when rebel leader Guillaume Soro joined former President Laurent Gbagbo’s government. When Gbagbo refused to surrender power to the internationally recognized winner of the 2010 election, Alassane Ouattara, U.N. and French forces removed him. Ouattara won a second five-year term in late 2015, and the U.N. withdrew its troops in June 2017. Robust economic growth in recent years has been driven by strong private investment in areas such as agriculture, agribusiness, mining, light manufacturing, housing, and services and helped by the government’s pro-business reforms.
Although the law guarantees the right to own and transfer private property and the courts enforce contracts, protection of property rights is fragile, and land titles are rare in nonurban areas. The judiciary is dysfunctional and not independent. Judges are poorly trained and susceptible to external interference and bribes. Corruption also persists in 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 value-added and interest taxes. The overall tax burden equals 20.9 percent of total domestic income. Over the past three years, government spending has amounted to 22.6 percent of total output (GDP), and budget deficits have averaged 3.0 percent of GDP. Public debt is equivalent to 48.8 percent of GDP.
Modernization of the regulatory framework and streamlining of the business start-up process have been boons for business owners in recent years. The credit information system has been improved. To reduce dependence on cocoa, the government encourages crop diversification by guaranteeing high prices for other crops while still guaranteeing a minimum “farmgate” price to cocoa farmers.
Trade is significant for Côte d’Ivoire’s economy; the combined value of exports and imports equals 62 percent of GDP. The average applied tariff rate is 8.2 percent. Nontariff barriers impede some trade. In general, government policies do not significantly deter foreign investment. The financial sector is vulnerable to government influence. The state owns or holds shares in several domestic financial institutions and influences the allocation of credit.