Togo’s trade deficit has widened to 163.5 billion CFA frs in the period between March to June 2016, up 18% year on year and compares with a deficit of 139 billion CFA francs a year ago, according to information from the National Credit Council. Although there was a firm rise in exports (up 44.2 bn, year on year), this was outpaced by even larger spending on imports linked to infrastructure improvements. We expect Togo to benefit from increased phosphate exports for the remainder of 2016, particularly after the resolution of the strike at the state run phosphate producer, SNPT. Togo should also profit from high cotton prices given that it has prioritised the development of the cotton industry. Togo’s trade balance should improve in the medium term, according to IMF projections.
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