EBID projects ECOWAS GDP to grow at 4.4% in 2022

The ECOWAS Bank for Investment and Development (EBID) has released its 2022 West African Development Outlook, projecting a growth focus for the region at 4.4% for the year. In a recent interview on CNBC Africa, MacDonald Goanue, the Director of Research and Strategic Planning at EBID, delved into the key drivers affecting this outlook and the potential risks that could impact economic growth in the ECOWAS region. Goanue emphasized the importance of deploying a synchronized monetary and fiscal policy to address global headwinds and maintain economic stability. One of the primary concerns highlighted in the report is inflation, with disparities between Anglophone and Franco-Fong West African countries. Goanue pointed out that inflation rates in Eurozone countries, particularly in 2021, were significantly higher than in Francophone countries due to structural differences in monetary policies. While countries like Benin reported a modest inflation rate of 1.7%, Nigeria saw a spike to 17%. The varying currency depreciations in these regions have played a pivotal role in shaping inflationary trends. Goanue also addressed rising debt levels among ECOWAS member countries, noting that six nations have exceeded the 70% debt-to-GDP threshold. These elevated debt levels have been exacerbated by the global pandemic and ongoing geopolitical tensions, such as the conflict between Ukraine and Russia. In response to these challenges, Goanue emphasized the need for structural transformation and increased intra-regional trade to counter external shocks. The key theme resonating throughout the interview was the call for a more deliberate approach to policy responses in the face of evolving economic conditions. Goanue stressed the importance of aligning monetary and fiscal policies to foster sustainable growth and resilience within the region. By advocating for a synchronized policy framework, EBID aims to mitigate the impact of global uncertainties and bolster economic stability across ECOWAS countries. In line with the report's recommendations, Goanue outlined the significance of enhancing inter-regional trade and adding value to exports as key strategies to navigate the current economic landscape. By promoting greater trade integration and value addition, ECOWAS nations can enhance their ability to withstand external shocks and foster economic development. Goanue underscored the importance of adopting accommodative monetary policies while striking a balance with robust fiscal measures to support sustainable growth. As policymakers in the region grapple with the challenges posed by inflation, rising debt levels, and global headwinds, EBID's insights offer a roadmap for navigating these complexities. By emphasizing the need for coordinated policy responses and a focus on intra-regional trade, EBID seeks to steer ECOWAS countries towards a path of resilience and prosperity in 2022.