Burkina Faso: Staff Report for the 2011 Article IV Consultation and the Third Review Under the Extended Credit Facility - Staff Report

Abstract

Appendix III of the Burkina Faso report examined the relationship between public investment, growth, and debt sustainability using the model developed in Buffie et al. (2012). The results showed that, under certain conditions, scaling-up investment to levels envisioned in the new PRSP could raise economic growth substantially in the medium to long term, boost private investment, and increase consumption. They also indicated that financing options for the investment surge should be selected based on their implications for long-term fiscal and debt sustainability. Given the country structural conditions - as reflected in the efficiency of public investment and rate of return, among others - a better macroeconomic outcome would be achieved through moderate and sustained increase in public investment, financed through higher grants and concessional loans, as well as increased government revenue

Citation

Anon. Burkina Faso: Staff Report for the 2011 Article IV Consultation and the Third Review Under the Extended Credit Facility - Staff Report. International Monetary Fund, Washington, D.C., USA (2012) 114 pp. [IMF Country Report No. 12/158]

Burkina Faso: Staff Report for the 2011 Article IV Consultation and the Third Review Under the Extended Credit Facility - Staff Report

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