Keypoints:
- Economy grew 4.9 % in 2024, up from 3.0 %, led by services and agriculture
- Poverty eased by 3 percentage points, but inflation and energy access remain concerns
- Deficits narrowed; outlook positive yet hinged on reforms and security
BURKINA Faso’s economy roared back in 2024, expanding by 4.9 percent, up from 3.0 percent in 2023, according to the World Bank’s April 2025 Economic Update. The renewed momentum was driven by the services and agriculture sectors, benefiting from improved security, favourable weather patterns, and stronger government support. Real per capita GDP also climbed from 0.7 percent to 2.5 percent, marking meaningful gains in household wellbeing.
Inflation spikes, but poverty drops
However, inflation surged to 4.2 percent in 2024 from just 0.7 percent a year earlier, fuelled largely by speculative food-price hikes following a delayed rainy season. Despite this, the agricultural and service-led growth helped reduce the extreme poverty rate by three percentage points to 23.2 percent, with rural regions seeing the sharpest decline. Yet over 5.5 million people remain in extreme poverty, spotlighting ongoing inequality challenges.
Fiscal and current account deficits narrow
The World Bank report notes improvement in Burkina Faso’s fiscal and external balances. The fiscal deficit narrowed from 6.5 percent to 5.6 percent of GDP thanks to tighter public spending and better revenue collection. Meanwhile, the current account deficit improved from 8.0 percent to 6.4 percent of GDP, largely due to rising global gold prices boosting export revenues. Still, high-interest regional borrowing continues to fund much of the deficit.
Optimistic outlook, conditional on reforms
Looking ahead, growth is projected to reach around 5 percent in the medium term if key vulnerabilities are managed—namely insecurity, climate shocks, debt refinancing risks, and a fragile financial sector. Expansion in services, a revival of industry via improved energy access, and steady agricultural output underpin the positive forecast. Inflation is expected to ease back into the WAEMU target range, while ongoing fiscal discipline may support a modest 1 percent annual drop in extreme poverty.
Co-authors Daniel Pajank and Ibrahim Nana recommend enhancing public resource mobilisation, stating: ‘continuous modernisation of the tax administration, broadening of the tax base and optimisation of public spending, while improving debt management and mobilising more concessional financing.’
Energy sector reform is vital
A dedicated chapter on energy highlights the pivotal role of reliable, affordable electricity in Burkina Faso’s transformation. Access remains far below regional averages, limiting productivity and economic opportunity, especially in rural areas.
‘Affordable, reliable, and sustainable electricity is essential to improve productivity in agriculture, support the growth of services, and revive the industrial sector,’ notes Hamoud Abdel Wedoud Kamil, World Bank Country Manager for Burkina Faso.
Regina Nesiama Miller and Adwoa Asantewaa, co-authors of the energy chapter, call for sector-wide reforms: ‘pricing based on the cost of electricity production and the expansion of off-grid access… essential to reduce vulnerabilities and ensure inclusive growth’.
Tackling energy costs and structural issues
Despite policy efforts, the electricity sector still lags behind, grappling with some of the region’s highest generation costs and heavy dependence on imported fuel. The report concludes by urging bold structural reforms to lower costs, diversify energy sources, and unlock long-term growth potential.
