Economy of Burkina Faso
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| Economy of Burkina Faso | ||
|---|---|---|
| Currency | CFA Franc (XOF) | |
| Fiscal year | Calendar year | |
| Trade organisations | AU, WTO | |
| Statistics [1] | ||
| GDP ranking | 118th (2004) [2] | |
| GDP | $15.74 billion (2004) | |
| GDP growth | 4.8% (2004) | |
| GDP per capita | $1,200 (2004) | |
| GDP by sector | agriculture (39.5%), industry (19.3%), services (41.3%) (2004) | |
| Inflation | 2.4% (2004) | |
| Pop below poverty line | 45% (2003) | |
| Labour force | 5 million (note: a large part of the male labor force migrates annually to neighboring countries for seasonal employment) (2003) | |
| Labour force by occupation | agriculture (90%), (2000) | |
| Unemployment | N/A | |
| Main industries | cotton lint, beverages, agricultural processing, soap, cigarettes, textiles, gold | |
| Trading Partners [3] | ||
| Exports | $418.6 million (2004) | |
| Export - Commodities | cotton, livestock, gold | |
| Main partners | People's Republic of China 32.3%, Singapore 10.7%, Bangladesh 4.5%, Ghana 4.4%, Colombia 4.4% (2004) | |
| Imports | $866.3 million (2004) | |
| Imports - Commodities | capital goods, foodstuffs, petroleum | |
| Main Partners | France 31.5%, Côte d'Ivoire 13.9%, Togo 8.5% (2004) | |
| Public finances [4] | ||
| Public debt | N/A | |
| Revenues | $695.2 million (2004) | |
| Expenses | $876.3 million (2004) | |
| Economic aid | $484.1 million (1995) | |
Burkina Faso is one of the poorest countries in the world with an average income per capita of €250 (US$300). More than 80% of the population relies on subsistence agriculture, with only a small fraction directly involved in industry and services. Low rainfall, poor soils, lack of adequate communications and other infrastructure, a low literacy rate, and a stagnant economy are all longstanding problems. The export economy also remains subject to fluctuations in world prices.
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[edit] Macro-economic trend
This is a chart of trend of gross domestic product of Burkina Faso at market prices estimated by the International Monetary Fund with figures in millions of CFA Francs.
| Year | Gross Domestic Product | US Dollar Exchange | Inflation Index (2000=100) |
|---|---|---|---|
| 1980 | 412,240 | 211.29 CFA Francs | 45 |
| 1985 | 642,387 | 449.22 CFA Francs | 67 |
| 1990 | 848,910 | 272.26 CFA Francs | 65 |
| 1995 | 1,330,159 | 499.12 CFA Francs | 88 |
| 2000 | 1,861,522 | 711.86 CFA Francs | 100 |
| 2005 | 3,027,196 | 526.56 CFA Francs | 115 |
For purchasing power parity comparisons, the US Dollar is exchanged at 179.70 CFA Francs only.
Current GDP per capita of Burkina Faso grew 13% in the Sixties reaching a peak growth of 237% in the Seventies. But this proved unsustainable and growth consequently scaled back to 23% in the Eighties. Finally, it shrank by 37% in the Nineties. Average wages in 2007 hover around $2-3 per day.
Although handicapped by an extremely resource-deprived domestic economy, Burkina remains committed to the structural adjustment program it launched in 1991. It has largely recovered from the devaluation of the CFA in January 1994, with a 1996 growth rate of 5.9%.
Many Burkinabe migrate to neighbouring countries for work, and their remittances provide a substantial contribution to the balance of payments. Burkina is attempting to improve the economy by developing its mineral resources, improving its infrastructure, making its agricultural and livestock sectors more productive and competitive, and stabilizing the supplies and prices of cereals.
The agricultural economy remains highly vulnerable to fluctuations in rainfall. The Mossi Plateau in north central Burkina faces encroachment from the Sahara. The resultant southward migration means heightened competition for control of very limited water resources south of the Mossi Plateau. Most of the population ekes out a living as subsistence farmers, living with problems of climate, soil erosion, and rudimentary technology. The staple crops are pearl millet, sorghum, maize, and rice. The cash crops are cotton, groundnuts, karite (shea nuts), and sesame. Livestock, once a major export, has declined.
[edit] External trade
Industry, still in an embryonic stage, is located primarily in Bobo-Dioulasso, Ouagadougou, Banfora, and Koudougou. Manufacturing is limited to food processing, textiles, and other import substitution heavily protected by tariffs. Some factories are privately owned, and others are set to be privatized. Burkina's exploitable natural resources are limited, although a manganese ore deposit is located in the remote northeast. Gold mining has increased greatly since the mid-1980s and, along with cotton, is a leading export moneyearner.
One of the poorest countries in the world, landlocked Burkina Faso has a high population density, few natural resources, and a fragile soil. Approximately 90% of the population is engaged in (mainly subsistence) agriculture which is highly vulnerable to variations in rainfall. Industry remains dominated by unprofitable government-controlled corporations. Following the African franc currency devaluation in January 1994 the government updated its development program in conjunction with international agencies, and exports and economic growth have increased. Maintenance of its macroeconomic progress depends on continued low inflation, reduction in the trade deficit, and reforms designed to encourage private investment.
[edit] References
- This article contains material from the CIA World Factbook which, as a U.S. government publication, is in the public domain.
[edit] External links
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