Togo : AfDB forecasts economic growth at 5.3% this year, driven by agriculture

Agriculture
Monday, 03 February 2020 15:38
Togo : AfDB forecasts economic growth at 5.3% this year, driven by agriculture

(Togo First) - Driven by agriculture, Togo’s economy is expected to grow to 5.3%, a recent report by the African Development Bank (AfDB) showed. 

Economic outlook is encouraging and growth should reach 5.3% in 2020 and 5.5% in 2021,” according to the document. This positive trend should be spurred by “good results in agriculture and healthy monetary management.” 

In fact, debt should fall below 70% of GDP this year, with an average budget deficit of 2.1% of GDP, and a current account deficit expected at 5.2% of GDP in 2020, and 5% in 2021. 

AfDB then lauded recent “public investment that improved basic infrastructure as well as road and power infrastructure. It also praised Togo for having organized, last year, its first legislative and local elections in more than 30 years. 

Talking about headwinds, the institution mentioned an uncertain political situation, low financing rates in agriculture (less than the 0.5% average for internal loans) even though it employs most people than any other sector. Moreover, the AfDB points out Togo’s urgent need to industrialize (a key challenge the national development plan aims to tackle). 

Bank loans to growth sectors require a systematic dialogue between public and private actors,” authors of the report wrote.

Also, taxes, according to the AfDB, should be a powerful tool in improving its revenues and thus its growth. 

Ayi Renaud Dossavi

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