Togo flag Togo: Economic and Political Overview

The economic context of Togo

Economic Indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

Togo was enjoying dynamic economic performances until the Covid-19 halted this trend. According to IMF estimates, Togo’s GDP grew by a modest 1.8% in 2020, impacted by the lockdown measures and the collapse of trade. Economic activity recovered in 2021, GDP growth reaching 4.8%, and an acceleration is expected for 2022 (5.9%) and 2023 (6.1%) (IMF). This performance will mainly be driven by agriculture, phosphate exports, and port traffic.

The country has implemented a USD 70 million plan to respond to the coronavirus pandemic. Decreased revenues and increased spending deteriorated public finances. Budget deficit soared from -0.9% GDP in 2019 to -6.9% GDP in 2020, and remained high in 2021 (-5.9%) (Coface). It is expected to narrow slightly to -5% GDP in 2022, due to the recovery of economic activity at the port of Lomé, which accounts for 60% of government revenue (Coface). Public debt continued to increase to reach 62.9% GDP in 2021, and is expected to slowly reduce to 62.6% GDP in 2022 and 61.6% GDP in 2023 as fiscal consolidation efforts are resumed (IMF). Estimated at 1.8% in 2020, inflation increased to 2.7% in 2021 due to higher food and oil prices, and is expected to decrease to 2.5% in 2022 and 2.2% in 2023, remaining well below the WAEMU’s criterion. The authorities are pursuing the USD 7.8 billion National Development Plan 2018-2022, which focuses on infrastructure, logistics, natural resources and food processing, as well as inclusion and social development. Committed to structural reforms, the country has also expressed its interest in an Extended Credit Facility (ECF) program from the IMF.

According to the World Bank, 62% of the workforce have been affected by the effects of the pandemic, the most impacted sectors being services and agriculture. In 2020, the unemployment rate in the country was at 4% (ILO Estimate). The poverty level is twice as high in rural areas (58.8%) than in urban areas (26.5%) and only 46.9% of the population has access to electricity (World Bank).

 
Main Indicators 201920202021 (e)2022 (e)2023 (e)
GDP (billions USD) 7.22e7.59e8.499.3610.27
GDP (Constant Prices, Annual % Change) 5.5e1.8e4.85.96.1
GDP per Capita (USD) 893e916e1,0001,0761,152
General Government Gross Debt (in % of GDP) 52.460.362.962.661.6
Inflation Rate (%) 0.71.8e4.34.62.0
Current Account (billions USD) -0.06-0.11-0.23-0.25-0.26
Current Account (in % of GDP) -0.8-1.5e-2.7-2.7-2.5

Source: IMF – World Economic Outlook Database, October 2021

Note: (e) Estimated Data

Main Sectors of Industry

The agricultural sector contributes to 18.8% of GDP and employs 32% of the active workforce (World Bank). The main food crops include cassava, yams, maize, millet, and sorghum, with cocoa, coffee and cotton as cash crops (generating about 20% of export earnings). Although many farmers practice subsistence farming, some basic foodstuff still needs to be imported. The agricultural sector is vulnerable to climate conditions, and in 2021 cotton production decreased by 43% due to flooding (Coface).

The industrial sector is quite limited in Togo, accounting for only 22.7% of GDP and 19% of the total employment. With an estimated 60 million metric tons of reserves, phosphate is the country's most important commodity, making Togo one of the world's largest producers of phosphate. Hence, mining is the main industrial sub-sector, followed by food processing. The country also has clinker deposits, which fuels a dynamic cement industry.

The services sector is estimated to account for 49.3% of GDP, giving employment to 48% of the active population. The sector has been growing consistently in recent years, and trade is its biggest contributor.
The Lomé Port, which is one of the largest ports in the region, is a major asset as the transport of goods to neighboring countries is boosting services industry.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 32.4 19.2 48.4
Value Added (in % of GDP) 18.8 22.7 49.3
Value Added (Annual % Change) 1.3 5.3 0.9

Source: World Bank, Latest Available Data. Because of rounding, the sum of the percentages may be smaller/greater than 100%.

 

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Indicator of Economic Freedom

Definition:

The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.}}

Score:
57,5/100
World Rank:
113
Regional Rank:
18

Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation

 
 

Country Risk

See the country risk analysis provided by Coface.
 

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Sources of General Economic Information

Ministries
Ministry of Finance
Ministry of Foreign Affairs
Ministry of Justice
Ministry of Territorial Administration
Ministry of Defense
Statistical Office
National Institute of Statistics (INSEED)
Central Bank
Central Bank of West African States (BCEAO)
Stock Exchange
Regional Securities Exchange
Economic Portals
Togo-Presse
Republic of Togo
Togo First
 

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Latest Update: July 2022