West African Economic and Monetary Union: Staff Report for the 2026 Discussions on Common Policies of Member Countries-Press Release; Staff Report; and Statement by the Executive Director for West African Economic and Monetary Union

Economic growth in the WAEMU remained strong in 2025, while inflation fell below target primarily owing to transitory food price deflation. Progress in reducing external imbalances, elevated gold and cocoa prices, rising volumes of hydrocarbons and gold exports, and sizable capital inflows supported a sharp rebound in reserves, which returned to adequate levels in 2025 and continued to rise in early 2026. Economic and financial conditions remain heterogeneous across member states, with elevated public debt burdens, tight financing conditions, and pockets of financial sector vulnerability in several countries continuing to pose risks. The region remains vulnerable to downside risks, notably fiscal sustainability pressures and high financing needs, elevated sovereign‑bank nexus risks with localized financial sector vulnerabilities, adverse commodity price movements and tighter financing conditions, and security and climate shocks. Heightened geopolitical tensions—including the war in the Middle East—have increased downside risks through commodity prices, financing, and confidence channels, with uneven exposure across member states, underscoring the importance of policy flexibility and policy buffers.