- Economic performance has remained robust, and Togo is progressing towards the Sustainable Development Goals.
- The 2024 Article IV consultation centered on anchoring macroeconomic stability by strengthening debt sustainability; laying the basis for sustained growth; and enhancing inclusion.
- The authorities are pursuing efforts to strengthen debt sustainability through a growth-friendly fiscal consolidation; boost growth through structural reforms, including via continued efforts to enhance the business environment; and strengthen inclusion by expanding social and pro-poor spending.
Washington, DC: An International Monetary Fund (IMF) staff team, led by Hans Weisfeld and comprising John-Paul Fanning, Maximilien Kaffo, Grace Li, and Etienne Vaccaro-Grange, conducted discussions for the 2024 Article IV consultation with Togo during May 29 – June 7, 2024. At the conclusion of the visit, the mission issued the following statement:
"Economic growth reached an estimated 5.6 percent in 2023, and inflation has fallen to 2.6 percent (April 2024). The authorities have made substantial progress in revenue mobilization, raising overall fiscal revenue to 16.8 percent of GDP in 2023. The authorities have also made a good start to fiscal consolidation.
"In line with continued elevated growth, the share of the population living in extreme poverty is estimated to have fallen to 25.8 percent (from 28.4 percent in 2018). Togo has also made progress towards other Sustainable Development Goals (SDGs), raising its overall degree of SDG attainment to 56.3 out of 100 (from 54.7 in 2018, see https://dashboards.sdgindex.org/profiles/togo). The government has achieved this progress despite the shocks of recent years, including notably the COVID-19 pandemic, the increase in food and fuel prices, and the regional security challenges.
"The authorities are pursuing efforts to (i) strengthen debt sustainability through a growth-friendly fiscal consolidation, based mainly on raising tax revenue while also enhancing the efficiency of spending; (ii) boost growth through structural reforms, including continued efforts to enhance the business environment; and (iii) strengthen inclusion by expanding social and pro-poor spending, including through higher cash transfers. The provision of targeted support for the most vulnerable will benefit from the authorities' continuing efforts to establish a biometric ID for all Togolese citizens and compile a unified social registry for vulnerable populations.
"The mission considers that thanks to the government's efforts, barring exogenous shocks, economic performance should remain robust and social outcomes continue to improve.
The mission looks forward to continuing the fruitful dialogue with the Togolese authorities in the period ahead, including in the context of the IMF's ongoing financial support for Togo under the IMF's Extended Credit Facility."
