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The economy of Burkina Faso is mostly dependent on agriculture, while gold exports are growing. According to the United Nations Development Program’s 2021-2022 HDI report, Burkina Faso is ranked 184th out of 191 nations.
In 2021, the economy saw a robust recovery, expanding by an estimated 6.9%. The recovery in the service sector and the continuing rise in gold exports were the main drivers of this expansion. The primary sector contracted by 4.1% as a result of the drop in agricultural production brought on by the lack of rain.
Exports increased by 6.5% in 2021, helped by the gold industry, and imports rose by 15.5%, mostly due to increases in the cost of power and hydrocarbons. Due to this, the current account deficit has increased from 0.1% of GDP in 2020 to an estimated 3.0% of GDP today.
Inflation reached a record high of 3.9% in 2021 due to strong domestic demand brought on economic growth and the effects of supply chain bottlenecks throughout the year.
Last but not least, the fiscal deficit expanded to 6.0% of GDP in 2021 as a result of the rapid rise in defence and security-related expenditure, a structurally high public wage bill, and ever-increasing humanitarian needs. At the same time, public debt passed the 50% level and domestic debt now makes up the majority of total debt.