Burkina Faso: Economic growth despite rising inflation and uncertainty!

Burkina Faso: Economic growth despite rising inflation and uncertainty!

In Burkina Faso there is positive news about economic growth despite ongoing challenges. An impressive increase in economic activity of an estimated 5% was recorded in 2024, an increase compared to 3% in 2023. The World Bank reports that this growth rate is the result of extensive reforms in various sectors, including the processing of raw materials such as cotton and tomatoes. In addition, the reform of the mining law has contributed to economic development, as Burkina Faso is an important gold producer. DW informs that…

Despite these positive developments, people continue to experience challenges in their everyday lives, particularly with regard to rising costs of living. The inflation rate climbed to 4.2% in 2024, a jump from just 0.7% the year before. Dasmané Traoré, President of the Consumers' Association of Burkina Faso, cites market speculation as the main cause of the skyrocketing food prices. Traders would build up stocks and sell at high prices during shortages, making the situation particularly dramatic for imported food. According to Africa Press…

Economic framework and reforms

Sedick Abba, a journalist from Niger, highlights that there has been a mobilization of internal resources, which is helping to create a more stable economic environment. Recent reports on the country show that, despite the increased threat of security challenges, more than 71% of the national territory is under government control, an improvement compared to just 40% in 2022. 1,014,000 people were able to return to their villages, which is a positive sign for the stability of the region.

In the agricultural sector, the 2024/2025 campaign benefits from good climatic conditions and strong government support. The sector, especially agriculture and services, has become more motorized in recent months, which also increases buyer sentiment. The African Development Bank advisory report also shows that 75% of export revenues depend on profitable gold sales, underscoring the role of mining in the Burkinabe economy. These are the assessments of the BAD…

Outlook for the future

The outlook for the Burkinabe economy is shaped by necessary investments in infrastructure and the strengthening of small and medium-sized enterprises (SMEs). The African Development Bank report forecasts further gross domestic product (GDP) growth of 5.7% in 2025 and 6.8% in 2026. The inflation rate could fall to 2.6% by then. Statista points out…

Implementing structural reforms and focusing on internal peace as well as improving relations with neighboring countries are crucial to ensure sustainable economic development. So while economic growth remains strong, the Burkinabè still face the challenge of noticeably improving everyday life. The road remains long, but the steps in the right direction are obvious.