Niger: Economic Outline
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.
Niger's growth has been particularly resilient to shocks the past few years. Despite the
risks spurred by terrorist attacks, low uranium export prices, climate change affecting agriculture, the closure of the border with Nigeria, the COVID-19 pandemic and the war in Ukraine, Niger’s economy avoided recession. After slowing down to 1.4% in 2021 due to the decline in agricultural activity caused by low rainfall, GDP growth accelerated to 11.1% in 2022, driven by private investment and oil exports through the new pipeline to the Benin coast (IMF, Coface). Economic activity is expected to slow down to 6.1% GDP in 2023, before peaking up again to 13% GDP in 2024 (IMF). Rising oil exports, major donor-funded projects and foreign direct investment are important drivers of growth.
In 2022, Niger’s economic activity rebounded after a year of weak growth due to adverse weather conditions. However, in the context of high food import costs and security concerns, fiscal consolidation efforts have been delayed. Fiscal deficit increased from -5.9% GDP in 2021 to -6.9% GDP in 2022 (IMF). It is expected to gradually reduce to -5.3% GDP in 2023 and -4.1% GDP in 2024, thanks to increased revenues from customs duties, taxes and oil production and despite the persistence of social and security emergencies (IMF, Coface). The deficit will continue to be financed mainly through concessional loans and grants from partner organisations and countries (Coface). Public debt remained stable at 51.1% GDP in 2022, down from 51.3% GDP in 2021, and it is expected to reach 52.5% GDP in 2023 before declining to 49.4% GDP in 2024 (IMF). As it is mainly external and largely held by multilateral creditors, the risk of debt distress is reduced (Coface). Inflation increased from 3.8% in 2021 to 4.2% in 2022, but it is expected to decline to 2.8% in 2023 and 2.5% in 2024, remaining well below the ECOWAS convergence criterion of 10% (IMF). The Central Bank of West African States is expected to continue controlling inflation by hiking interest rates (Coface). The authorities remain committed to the reforms agreed in relation to the three-year arrangement under the Extended Credit Facility approved by the IMF in December 2021. Reforms focus on ensuring debt sustainability, broadening fiscal space, improving spending quality, increasing governance and fighting against corruption, and addressing constraints to the business environment (IMF). The arrangement is expected to catalyse additional bilateral and multilateral financial support (IMF). The main threat to economic stability is the degraded security situation, because of terrorist groups' activities in the region (Boko Haram, AQMI, Al-Murabitoun). Climate shocks and protraction of Russia’s war against Ukraine are additional significant risks.
Niger is one of the world’s poorest countries, and it has one of the highest demographic growth rates. Insecurity worsened by Boko Haram attacks led to a major humanitarian crisis. UNHCR counts more than 350,000 refugees and displaced persons in Niger. In 2021, the country ranked 189th out of 191 in the world in terms of human development. World Bank estimated that official unemployment rate in Niger was around 0.7% in 2021.
| Main Indicators | 2020 | 2021 | 2022 (E) | 2023 (E) | 2024 (E) |
|---|---|---|---|---|---|
| GDP (billions USD) | 13.76 | 14.92 | 15.22 | 16.62 | 19.00 |
| GDP (Constant Prices, Annual % Change) | 3.6 | 1.4 | 11.1 | 6.1 | 13.0 |
| GDP per Capita (USD) | 569 | 594 | 584 | 614 | 677 |
| General Government Gross Debt (in % of GDP) | 45.0 | 51.3 | 51.1 | 52.5 | 49.4 |
| Inflation Rate (%) | 2.9 | 3.8 | 4.2 | 2.8 | 2.5 |
| Current Account (billions USD) | -1.82 | -2.10 | -2.36 | -2.12 | -1.55 |
| Current Account (in % of GDP) | -13.2 | -14.1 | -15.5 | -12.8 | -8.1 |
Source: IMF – World Economic Outlook Database - October 2021.
Note: (e) Estimated Data
| Monetary Indicators | 2016 | 2017 | 2018 | 2019 | 2020 |
|---|---|---|---|---|---|
| CFA Franc BCEAO (XOF) - Average Annual Exchange Rate For 1 GBP | 800.68 | 749.15 | 741.42 | 732.38 | 737.93 |
Source: World Bank - Latest available data.
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
|---|---|---|---|
| Employment By Sector (in % of Total Employment) | 72.5 | 6.7 | 20.8 |
| Value Added (in % of GDP) | 36.5 | 20.8 | 37.1 |
| Value Added (Annual % Change) | -5.1 | 4.1 | 5.4 |
Source: World Bank - Latest available data.
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Labour Force | 8,108,892 | 8,435,887 | 8,749,634 |
Source: International Labour Organization, ILOSTAT database
| 2017 | 2018 | 2019 | |
|---|---|---|---|
| Total activity rate | 73.60% | 73.49% | 73.39% |
| Men activity rate | 84.88% | 84.72% | 84.55% |
| Women activity rate | 62.49% | 62.42% | 62.37% |
Source: International Labour Organization, ILOSTAT database
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.
Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation
See the country risk analysis provided by Coface.
The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.
Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House
The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
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Latest Update: September 2023
