Burkina Faso: B-/B maintained with a stable outlook by S & P
The ratings agency Standard & Poor's (S & P) said that the democratic transition process is on track.Halfway between the fall of President Blaise Compraoré in October 2014 and legislative and presidential elections scheduled for October 2015, investors are closely following the socio-political development of Burkina Faso. In its statement of June 5th, Standard & Poor's is willing to reassure: it expects elections to be conducted in a relatively peaceful environment with a respected schedule.
Growth prospects have nevertheless been revised downward for 2015 to 4%, due to the slowdown in investment and consumption. Growth should pick up again in 2016. The public debt would remain within the planned proportion, 29%, and the budget deficit to 2.5% of GDP.
The agency says the failure of the democratic process would be very damaging for the economy, given the weakness of its institutions in general and its vulnerability to external shocks, as it would lead to a de facto drying up of essential foreign aid (75% of debt is concessional).