Togo advances in SDGs despite global challenges, says IMF

An International Monetary Fund (IMF) mission conducted discussions with Togo from May 29 to June 7 as part of the 2024 Article IV consultation. The IMF issued a statement following the mission, noting significant economic progress in the country.

According to IMF estimates, Togo’s economic growth reached 5.6% in 2023. Inflation has decreased to 2.6% as of April 2024. These figures reflect a stable economic environment despite recent global challenges.

The Togolese authorities have made substantial progress in revenue mobilization, raising revenues to 16.8% of GDP in 2023. They have also made a strong start in fiscal consolidation efforts. The IMF highlighted these achievements as indicators of sound economic management.

Consistent high growth has led to a reduction in extreme poverty, which has decreased to 25.8% from 28.4% in 2018. Togo has also advanced in achieving other Sustainable Development Goals (SDGs), with its overall achievement score rising to 56.3 out of 100 from 54.7 in 2018.

The IMF commended Togo for its progress despite facing significant challenges over recent years, including the COVID-19 pandemic, rising food and fuel prices, and regional security issues. The government’s efforts to maintain debt sustainability through growth-friendly fiscal consolidation have been noted as particularly commendable.

The Togolese government continues to prioritize stimulating growth through structural reforms and improving the business climate. Enhancing social inclusion by increasing social spending and support for vulnerable populations is also a key focus. This includes expanding cash transfers and establishing a biometric identification system and a unified social registry for individuals and households.

The IMF mission believes that, barring external shocks, Togo’s economic performance is expected to remain strong, and social outcomes should continue to improve. The IMF looks forward to ongoing fruitful dialogue with Togolese authorities, particularly in the context of the financial support provided under the IMF’s Extended Credit Facility, approved on March 1.