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

This paper presents staff report on discussions with regional institutions of the West African Economic and Monetary Union’s (WAEMU). Economic growth in the WAEMU reached 6.6 percent in 2025 while inflation fell below its target range from mid-2025, driven primarily by transitory food price deflation. Progress in reducing external imbalances continued as the current account deficit narrowed from 5.7 percent of gross domestic product (GDP) in 2024 to 1.7 percent in 2025, reflecting elevated gold and cocoa prices and rising hydrocarbon export volumes. Fiscal policy should ensure credible and sustained convergence toward the 3 percent of GDP fiscal deficit target to safeguard debt sustainability, external viability, and financial stability. Fiscal slippages should be avoided, as additional financing needs could strain the regional market and intensify sovereign-bank nexus risks. The authorities should continue efforts to address persistently high nonperforming loans, improve provisioning, enhance crisis preparedness, and strengthen prudential enforcement. Policies to strengthen regional resilience and deepen integration will be important to support sustainable growth.