Togo 2012 budget sees 4.5 pct growth, slight deficit


Togo’s economy is forecast to grow by 4.5 percent next year, according to the government’s proposed budget, which will raise spending by 18.4 percent and run a slight deficit.

According to the budget, which was agreed late on Thursday and must be approved by parliament before the end of the year, inflation is forecast to drop to 1.2 percent in 2012, from 2.1 percent this year.

Spending is due to increase to 638.2 billion CFA francs ($1.3 billion), leaving an 11.7 billion CFA deficit, according to the plan, Reuters reports.

Earlier this year, the International Monetary Fund approved a final tranche of about $14 million for Togo, as the country completes a $108 million IMF-backed economic program approved in 2008.

Cotton and phosphates are Togo’s two largest export earners.