The International Monetary Fund (IMF) said that Togo has made significant progress in macroeconomic stability, but challenges remain in accelerating economic reforms and reducing poverty. The country's GDP growth accelerated from almost 4.5% in 2010-2011 to 5.75% in 2012-2013, reflecting dynamism in agriculture, mining, construction and public works. Growth has been accompanied by a widening of the current account deficit, financed mainly through foreign direct investment. IMF said that Togo is facing challenges in achieving greater prioritisation of public investment projects, reducing fuel subsidies, and containing the public wage bill in order to create the needed fiscal space for higher social and infrastructure spending. The fund said that Togo needs to formulate annual budgets in the context of medium-term budget policies and improve public debt management. Togo's sustainable growth is hampered by infrastructure bottlenecks, particularly in the electricity and transport sectors, high telecommunication costs, and a generally weak business environment. The country is advised to focus on improving debt management and seeking financing on terms consistent with debt sustainability. To free budget space for social and infrastructure expenditure, Togo has to reduce significantly the poorly-targeted fuel subsidies and lower growth of public sector wages. IMF advised the country to intensify financial sector oversight and resolve problem banks, strengthening supervision of microfinance institutions and further restructuring of public banks.
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