Economic trends
The political impasse experienced by Ivory Coast following the second round of presidential elections on 28 November 2010 turned into armed conflict between supporters of incumbent President Gbagbo and the Republican forces in Ivory Coast loyal to Mr. Ouattara, President-elect recognized by the international community, who evetually took office in April 2011.
Since then the country has been functioning again, helped by the lifting of economic sanctions and financial assistance from the IMF (with 616 million USD) and the Paris Club (78% reduction of debt service). The recovery is significant, even though the stimulus only focuses on urban areas, but growth prospects are not sufficient to ensure continuing stability. The political situation has become stabilized but social tensions and geographic inequalities (rural poverty) remain strong.
Ivory Coast's economy depends largely on exogenous factors, such as weather conditions and the price of raw materials in the international market. The international economic crisis has destabilized the Ivorian economy, which entered into recession in 2011.
The country's return to peace and security is one of the government's priorities for 2012.
Main branches of industry
Ivory Coast's economy is mainly based on agriculture. The sector contributes to almost one fourth of the GDP and employs two-thirds of the country's active population. Ivory Coast is one of the world's largest producers of cocoa and it is one of the world's biggest exporters of cocoa beans, coffee and palm oil. The country's production of rubber has increased substantially in these recent years. Ivory Coast produces oil and gas. The oil sector is beginning have more importance in the economy, with a steady growth rate and major investments. The country has some mining activities, particularly of precious minerals such as gold and diamonds, but also minerals such as nickel.
The industrial sector contributes to nearly one fourth of the GDP. The country's main industrial sectors are food-processing, textiles, construction materials, fertilizers, tuna canning, and assembling motorbikes, vehicles and bicycles.
As in many other African countries, the tertiary sector has been experiencing a rapid growth in the last several years. Services contribute to half of the GDP of the economy. The telecommunications sector is booming, and together with other sectors acts as a driver of the growth of services.
International trade
Ivory Coast is the hub of commercial activities in West Africa. The share of foreign trade in the country's GDP is around 90%. Ivory Coast is a member of the UEMOA (West African Economic and Monetary Union, which enforces a Common External Tariff (CET). It also belongs to the Free Trade Zone. in 2008, Ivory Coast also signed a stepping stone economic partnership agreement (EPA) with the European Union (EU), which continues to help the country during its reconstruction phase. This agreement essentially aims to maintain the preferential trade system which exists between the EU and Ivory Coast.
The three main export partners are the Netherlands (over 14% of exports), France, the United States and germany. The country mainly exports cocoa (40% of its exports revenue), mineral fuels and oil, vehicles, wood, ships and boats.
Ivory Coast's three main import suppliers are Nigeria (more than 20% of imports), France and China. The main import commodities are mineral fuels and oil, vehicles, ships, boats, cereals, and machinery.
In 2011, both imports and exports collapsed due to the armed conflict. The situation should improve in 2012 thanks to the country's return to peace and stablity.
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Last updates: May 2012
