The West African Economic and Monetary Union (UEMOA) is showing remarkable economic stability, with inflation continuing its downward trend. At the third ordinary session of the Monetary Policy Committee in Dakar, the regional central bank, BCEAO, confirmed that the Union’s inflation rate dropped to just 0.6% in the second quarter of 2025.
This is a significant decrease from the 1.2% recorded in the first quarter.
According to BCEAO Governor Jean-Claude Kassi Brou, this positive trend is due to improved local supply of essential goods, lower prices for imported foods, and reduced fuel costs in member states. This controlled inflation is bolstering household purchasing power and supporting conditions for more inclusive growth across the region.
The UEMOA’s economy remains robust. The Union saw real GDP growth of 6.5% in the second quarter of 2025, following a 7% increase in the previous quarter. The full-year forecast is set at 6.3%, driven by strong domestic demand and the dynamic performance of the oil, gas, and agricultural sectors.
In addition, external accounts have improved, and money market conditions have eased, thanks to sufficient liquidity in the banking system and a recent reduction in key interest rates.
During the session, the committee plans to review a report on monetary policy, assess an application for central bank refinancing for a banking institution, and discuss the state of the banking system in the zone. While the Union’s economic outlook is strong, officials noted that international uncertainties could still pose risks to external trade.
ARD/ac/fss/abj/APA