Africa Country Insight: Côte d’Ivoire
Côte d’Ivoire managed to stave off the worst effects of the Covid-19 pandemic as the country successfully avoided a recession in 2020. While a strong economic rebound is on the cards this year, stagnating cocoa prices and the lack of a clear vaccination strategy will weigh on potential growth.
What you will learn about:
- Abidjan, Côte d’Ivoire’s economic capital, is the largest consumer market when compared with cities in neighbouring West African countries.
- The Covid-19 pandemic slashed Côte d’Ivoire’s travel and tourism industry last year, with our estimations suggesting that activity in the sector will only return to pre-pandemic levels around 2024.
- There is a strong need for Côte d’Ivoire to diversify its economy in order to make economic growth, exports and fiscal revenue less dependent on cocoa production and prices.
Why an ageing population doesn’t mean soaring inflation
What’s the future for inflation? Joachim Nagel, the new president of Germany's central bank, believes the rapidly ageing global population will play a key role – ramping up pressure on prices in the medium term. While we agree slowing labour supply will stifle output growth, in his recent discussion Nagel failed to fully consider the demand side of the argument.Find Out More
Surging global food prices could drive eurozone core inflation higher
Along with energy prices, global food prices have emerged as a key driver of the eurozone's current inflationary surge. Like other advanced economies, eurozone countries tend to be less exposed to global food price fluctuations. But if persistent and combined with strong demand, high food prices could result in a higher pass-through to core inflation.Find Out More