Analysis by Region - Emerging Markets - Burkina Faso

Analysis by Region - Emerging Markets - Burkina Faso

Burkina Faso’s fragile security situation has been compounded by persistent challenges, especially related to poor weather conditions and policy uncertainty in the mining sector. However, the surge in gold prices throughout 2024 has provided a silver lining. By the end of Q3 2024, the price of gold had reached an overall average of $2,295.5/oz, reflecting an annual increase of 18.8%. The yellow metal's ascent has boosted economic activity through higher export earnings and government revenues. As a result, we forecast real GDP growth to rise to 3.5% in 2024 and remain stable at that level in 2025. Although we anticipate ongoing economic and political uncertainty next year, we expect the shift to La Niña weather conditions to support a recovery in the agricultural sector. In addition, our forecast of an 8.6% increase in gold prices next year should help sustain operations in the mining sector.