Togo

Following COVID-19-induced deceleration in 2020, Togo’s economy has recovered its pre-pandemic momentum, recording 6.0% growth in 2021 after 2.0% in 2020. Economic activity is projected to consolidate further, with real GDP growth reaching 5.8% in 2022. This robust recovery reflects effective pandemic response measures combined with sustained execution of major development infrastructure projects outlined in the government’s strategic roadmap.

Consistent with other WAEMU economies, Togo’s tertiary sector remains the largest contributor to GDP formation. Services contributed 61.1% of GDP in 2021, with secondary and primary sectors accounting for 20.3% and 18.5%, respectively. This sectoral composition reflects the importance of commerce, transport, financial services, and public administration in the economy, while demonstrating room for agricultural and manufacturing diversification.

Togo’s 2021 economic activity occurred amid rising consumer prices, with inflation reaching 4.5% compared to 1.8% in 2020. The price increase was driven primarily by supply-side constraints in the food sector and elevated import prices resulting from global supply chain disruptions following worldwide economic reopening. In 2022, inflation accelerated further to 7.6%—significantly exceeding the WAEMU convergence ceiling of 3.0% by 4.6 percentage points—reflecting deteriorating international conditions and commodity price pressures on this import-dependent economy.

Fiscal execution improved in 2021, with the overall budget deficit narrowing to 4.7% of GDP (including grants) from 7.2% in 2020, reflecting expenditure restraint and improved revenue collection. However, the fiscal position deteriorated in 2022, with the budget deficit projected to widen to 8.4% of GDP—driven by elevated infrastructure spending and development priorities—substantially exceeding the WAEMU convergence criterion of 3.0%.

According to IMF estimates, Togo’s public debt-to-GDP ratio has increased steadily over the past four years, rising from 54.1% in 2019 to 61.8% in 2020 and reaching 64.6% in 2021. This upward trajectory is projected to continue, with debt projected at 66.3% of GDP in 2022. While below the WAEMU convergence ceiling of 70%, the rapid increase warrants close monitoring of debt dynamics and refinancing risks.

Through its National Development Plan, Togo has adopted a new agricultural policy centered on agropole development and promotion to drive structural economic transformation. Launched in 2017, this agropole strategy targets: (i) value-added transformation of agricultural, fisheries, and livestock products into manufactured goods through SME/SMI promotion, and (ii) strengthening linkages across production, processing, and commercialization activities. This approach aims to build integrated agricultural clusters that generate employment, enhance competitiveness, and diversify the economy beyond primary production.