Togo flag Togo: Economic and Political Overview

The economic context of Togo

Economic Indicators

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.

After being impacted by the lockdown measures and the collapse of trade, Togo’s economic activity recovered in 2021, with GDP growing by 5.3%. Economic growth remained resilient in 2022 (5.4%) despite the challenging context brought by Russia’s invasion of Ukraine. According to IMF estimates, GDP growth is expected to further accelerate to 6.2% in 2023 and 6.5% in 2024, driven by agriculture, phosphate exports, and port traffic.

In 2022, Togo’s economic recovery was slowed down by the impact of the war in Ukraine. Inflation soared from 4.3% in 2021 to 5.6% in 2022, due to rising food and energy prices (IMF). About 40% of Togo’s wheat imports come from Russia (AfDB). According to IMF forecasts, inflation should decrease to 2.1% in 2023 and 2% in 2024, thanks to declining global food and energy prices as well as moderately stronger regional food production. Measures put in place to tackle rising living costs and to address security concerns lead to the postponement of fiscal consolidation efforts. Fiscal deficit remained high at -6.1% GDP (compared to -6% in 2021) and it is expected to gradually decrease to -4.6% GDP in 2023 and -3.4% GDP in 2024 (IMF). Public debt increased from 63.7% GDP in 2021 to 66.1% GDP in 2022, and it is forecasted to slightly decrease to 65.4% GDP in 2023 and 63.4% GDP in 2024 as fiscal consolidation efforts are resumed (IMF). The authorities are pursuing the implementation of the Togo Roadmap 2020-2025, which focuses on strengthening social inclusion and harmony and consolidated peace, boosting job creation by strengthening the economy, and modernizing and strengthening the State’s administrative structures (World Bank). Committed to structural reforms, the country has also expressed its continued interest in an Extended Credit Facility (ECF) program from the IMF

In 2021, the unemployment rate in the country was at 4.2% (World Bank, ILO estimate). The poverty level (45.5% before the pandemic) is twice as high in rural areas (58.8%) than in urban areas (26.5%) and only 46.9% of the population has access to electricity (World Bank).

 
Main Indicators 20222023 (E)2024 (E)2025 (E)2026 (E)
GDP (billions USD) 8.149.119.8610.6211.45
GDP (Constant Prices, Annual % Change) 5.85.45.35.35.5
GDP per Capita (USD) 9201,0041,0611,1161,175
General Government Gross Debt (in % of GDP) 66.367.267.666.064.3
Inflation Rate (%) n/a5.02.82.02.0
Current Account (billions USD) -0.26-0.28-0.27-0.24-0.25
Current Account (in % of GDP) -3.2-3.1-2.7-2.3-2.2

Source: IMF – World Economic Outlook Database, October 2021

Main Sectors of Industry

The agricultural sector contributes to 19.3% of GDP and employs 32% of the active workforce (World Bank). The main food crops include cassava, yams, maize, millet, and sorghum, with cocoa, coffee and cotton as cash crops (generating about 20% of export earnings). Although many farmers practice subsistence farming, some basic foodstuff still needs to be imported. The agricultural sector is vulnerable to climate conditions and parasite infestation.

The industrial sector is quite limited in Togo, accounting for only 22.2% of GDP and 19% of the total employment. With an estimated 30 million metric tons of reserves (USGS), phosphate is the country's most important commodity, making Togo one of the world's largest producers of phosphate. Hence, mining is the main industrial sub-sector, followed by food processing. The country also has clinker deposits, which fuels a dynamic cement industry.

The services sector is estimated to account for 49.3% of GDP, giving employment to 48% of the active population. The sector has been growing consistently in recent years, and trade is its biggest contributor. The Lomé Port, which is one of the largest ports in the region, is a major asset as the transport of goods to neighboring countries is boosting services industry.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 30.9 20.4 48.7
Value Added (in % of GDP) 18.3 20.5 51.3
Value Added (Annual % Change) 5.0 7.3 6.2

Source: World Bank, Latest Available Data. Because of rounding, the sum of the percentages may be smaller/greater than 100%.

 

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Indicator of Economic Freedom

Definition:

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.}}

Score:
57,5/100
World Rank:
113
Regional Rank:
18

Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation

 
 

Country Risk

See the country risk analysis provided by Coface.
 

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Latest Update: December 2023

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