Analysing Growth of Ivory Coast for the Period of 1970-2018

“Analysing growth of Ivory Coast for the period of 1970-2018

Ivory Coast, or Republic of Cote d'Ivoire, gain independence from France in 1960. It became a model of political stability and economic prosperity, avoiding several of the abysm that infested different African nations experiencing the difficulties of sovereignty. The country was divided religiously between Muslims within the north and Christians within the south. In 1970’s The African country had high and inclusive growth rates as a result of peace and stability, favourable terms of trade and policies for a productive labour force. From 1960 to 1993 the govt of African country was able to isolate itself from Marxists experimentations and military uprisings by maintaining shut ties with the West. African country was able to develop its economy, by maintaining Associate in Nursing setting of stability, attracting foreign investment and changing into the world's largest producer of cocoa. within the 1980’s there was steep decline in terms of trade that led to real exchange rate overvaluation. it had been solely in 1994 that the devaluation of its currency together with complementary political economy policies and structural reforms helped to revive the economic process impetus. within the late 1990’s the expansion once more bogged down once it entered an amount of political uncertainty, eventually resulting in civil conflict and political tension that lasted from 2002 to 2011.

Strong economic performance since 2012 could be a result of political standardization, improved business surroundings and robust reforms and auxiliary commercial enterprise policies. The speedy increase in GDP has triggered the beginnings of reduction in poverty. While the growth has been impressive, averaging at about 9% the reduction in poverty is slow and unemployment remains high. The govt. aims to beat this by upgrading public infrastructure and targeting of social safety nets. The govt. adopted a replacement National Development set up (NDP), for the 2016-2020 amount, designed to rework African country into a middle-income economy by 2020 further reduce the poverty rate. It is the pillar of governments economic policy worth USD 60 bn of which 40 % will come from government and 60% from private sector, mainly via public-private relationships.

The growth slowed down slightly in 2017 to 7.8% when compared to 8.2% of previous year (as shown in fig 1). This was mainly due to lower oil production and a 35% drop in global prices of cocoa. The short- and medium-term outlook remains encouraging. The GDP rate is forecast at 7% in 2018 and 2019. The Ivorian economy remains vulnerable to external risks such as fluctuations in the commodity prices, climatic conditions etc.

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Fig 1: Economic growth of Ivory Coast

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Fig 2: Contribution to GDP by sectors