Analysis by Region - Emerging Markets - Togo

Analysis by Region - Emerging Markets - Togo

The Togolese economy expanded by 5.9% p.a. over the 2021-2022 period after the Covid-19 pandemic caused growth to slow to 2.0% in 2020. The economy was mostly supported by public spending and fixed investment last year. However, this is not the case in 2023 as the government’s fiscal position becomes more restrictive while various public investment schemes suffer from poor execution. Meanwhile, consumer spending is slowly rebounding as inflationary pressures gradually dissipate. Nevertheless, real GDP growth is projected to decelerate to 4.8% in 2023 due to softer public expenditure and investment. Consolidation is a key priority in Togo as supportive spending over the past three years caused the fiscal position to deteriorate notably.