Positive Uranium Outlook Good For Budget Balance

BMI View: We forecast that Niger's budget balance will return to a deficit in 2014, although it will remain at a manageable level. Income will be boosted by a positive outlook for the extractive industries, though foreign grants will remain essential.

Niger enjoyed a budget surplus in 2013, at 0.1% of GDP. Although we expect the budget balance to return to deficit in 2014, at 2.3% of GDP, it will remain at a manageable level over the next several years. Government coffers will benefit from the nascent oil sector; an expected recovery in uranium prices, and a new deal struck with French mining firm Areva. Nevertheless, the country remains one of the poorest in the world, regularly coming near the bottom in a host of global development indices, and we expect that it will remain reliant on foreign grants to meet its fiscal expenditure.

Strong Commitment To Capital Expenditure

Return To Deficit
Niger - Budget Balance, USDbn (LHS) % % GDP, (RHS)

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Related sectors of this article: Economy, Balance of Payments, Investment Climate, Fiscal Policy
Geography: Niger

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