Country: Ivory Coast

Time Period: 1998 – 2009

Name of Data Series Label in Database Units of Series Data Source

Databank World
CPI FP.CPI.TOTL Base year 2010 Bank

Databank World
GDP Deflator NY.GDP.DEFL.ZS Base year 2009 Bank

GNP: GDP GNPGDPCIA156NUPN %age FRED

Databank World
Unemployment Rate SL.UEM.TOTL.ZS %age Bank

Databank World
Labor Force Participation Rate SL.TLF.CACT.ZS %age Bank

(World Bank) (FRED)Table 1

Analysis
A cursory glance of the figures (Figure 1) in the economy reveal a steady increase in the
inflation rate with unemployment rate, labor force participation rate and GNP remaining more
or less on the same level.

Figure 1: Indicators of the Economy

120

100

80

60

40

20

0
1996 1998 2000 2002 2004 2006 2008 2010

CPI GDP Deflator Unemployment LFPR GNP to GDP

 Figure 2: GNP to GDP
96.00000000

95.00000000

94.00000000

93.00000000
1996 1998 2000 2002 2004 2006 2008 2010

GNP to GDP

A deeper examination reveals that GNP has generally been on an increasing trend (see Figure 2)
(from 2000 – 2008) and it decreased slightly following 2008. The fact that the GNP: GDP ratio <
100 indicates that for Ivory Coast, the GNP is less than the GDP. This could be indicative of FDI
where capital in Ivory Coast is owned by foreign countries. This could explain a net outflow in
factor payments resulting in a lower GNP than GDP. The fact that GNP is on an increasing trend
however indicates that the rate of outflow of factor payments is decreasing over time. This
could be because the Ivory Coast is itself investing in capital in foreign countries. This would
decrease the net outflow of factor payments (since the inflow of factor payments is increasing
due to capital owned by Ivory Coast in foreign countries). The income of the country, as
expressed in GNP, is therefore steadily growing. 1Following 2008, there seems to be a slight
decrease in the GNP: GDP ratio – this could be due to the occurrence of the Great Recession.

Figure 3: CPI & GDP Deflator

150

100

50

0
1996 1998 2000 2002 2004 2006 2008 2010
CPI GDP Deflator

The Ivory Coast is experiencing a steady growth in inflation as depicted by the CPI and GDP
deflator (Figure 3) . At a few data points, such as in 2003, Ivory Coast experiences a slightly
higher GDP deflator than CPI. This could be due to several reasons such as a decrease in the
rate of inflation for imported goods for consumers when compared to rate of inflation for
domestically produced goods (which would mean a lower CPI than GDP deflator). Another
reason could be an outdated basket of goods and services that reflects in a lower CPI – with

1This is one possible interpretation of the increase in the GNP to GDP ratio. Another, could be a decreasing GDP. More data is
required for a conclusion.
 prices that are not relevant for the recent market. In general, the Ivory Coast is experiencing a
steady and healthy increase in the rate of inflation.

Figure 5: LFPR
Figure 4: Unemployment 67.2
9.28 67.1
9.26 67
66.9
9.24
66.8
9.22 66.7
9.2 66.6
66.5
9.18
66.4
9.16 66.3
1995 2000 2005 2010
9.14
1995 2000 2005 2010 LFPR
Unemployment
In general, unemployment has remained in
the 9% area (Figure 4). The labor force participation rate has also generally remained in the
same range between 66.4% and 67.1% (Figure 5). A closer examination of the data reveals
fluctuations in the unemployment data. On the other hand, the labor force participation rate is
generally experiencing an upward trend. In the years preceding 2000, unemployment decreases
– possibly because a portion of the labor force has now found jobs. After 2000, the
unemployment rate fluctuates between increases and decreases. It increases because persons
who previously held jobs are now without jobs. This, in itself, does not explain the increase in
the labor force participation rate (since the LFPR should in theory simply remain constant if
there were to be a change in the composition of workers from employed to unemployed since
both sections together comprise the labor force). The LFPR could be increasing because some
of the population has now entered the market and is on the lookout for jobs (anyone ranging
from youth to idle human resources).
Conclusion
By looking at the Ivory Coast’s various indicators, it is seen that the country performs stably.
The unemployment rate, labor force participation rate, GNP: GDP remains at roughly the same
level with no drastic changes. This fulfils a very basic need for agents such as businesses – the
need for predictability. Inflation increases gradually – a low rate of inflation is important for the
economy to maintain healthy consumption levels.

Bibliography
FRED. FRED . 3 January 2017. 19 September 2017.
<fred.stlouisfed.org/series/GNPGDPCIA156NUPN>.
World Bank. Databank Worldbank. 1 January 2017. 20 September 2017.
<databank.worldbank.org/data/reports.aspx?source=world-development-indicators>.