Togo cuts deficit, edges toward fiscal stability – World Bank
Friday, 10 April 2026 12:21 
(Togo First) - Togo’s overall budget deficit is expected to shrink from 6.8% of GDP in 2024 to 3.5% in 2025, before stabilising at around 3% between 2026 and 2028, according to the World Bank’s Africa Economic Update 2026.
The budget balance reflects the gap between government revenues and expenditures. A negative figure means the government spends more than it collects. The projected trend points to efforts to curb spending and improve revenue collection.
The improvement is more pronounced in the primary balance, which excludes interest payments on debt and provides a clearer view of fiscal management.
In several countries, including Togo, the primary balance is moving towards equilibrium, World Bank experts said, meaning revenues are increasingly sufficient to cover current spending, excluding debt service.
“The most significant improvements are expected in Ghana, Guinea-Bissau, Sierra Leone, Senegal and Togo,” the World Bank said.
Despite this progress, public debt remains elevated, though still below the 70% threshold set by WAEMU. Togo’s public debt is estimated at 66.2% of GDP in 2024, before falling to 63% in 2025 and to around 61.8% by 2028.
The main challenge is interest payments, which remain high and are limiting the reduction of the overall deficit.
Across the region, these payments account for between 2.9% and 3.2% of GDP, absorbing a large share of public resources and in some cases exceeding spending on health or education.
In the near term, the improvement in public finances is expected to rely on revenue growth outpacing expenditure. However, fiscal sustainability will also depend on the country’s ability to contain debt costs, requiring sustained fiscal discipline while preserving investment needed for growth.
A more volatile global environment and rising inflationary pressures could complicate that outlook.
Ayi Renaud Dossavi
