The Global Financial Crisis: Impact on WAEMU Member Countries and Policy Options : Impact on WAEMU Member Countries and Policy Options

Most WAEMU countries are likely to see economic growth deteriorate over the next twoyears as a result of the global economic crisis, and some WAEMU countries will be moreseverely affected by the crisis than others. This could have a detrimental effect on efforts toreduce poverty. Deteriorating remittances and commodity export prices are projected tonegatively affect the WAEMU countries' external current account deficit and reserves,although the impact should be cushioned by positive terms-of-trade shocks, such as decliningimport prices for food and fuel products. These developments should also help lowerinflation pressures, bringing WAEMU inflation closer to its historical level of about2 percent by 2010.