Economic trends
Ivory Coast's economy has been slowly declining since the outbreak of the armed rebellion in September 2002, which resulted in the discontinuation of most external assistance (except humanitarian aid), thus increasing the domestic and foreign debt and causing a drastic reduction of foreign and domestic investment. Ivory Coast's economy has increased again in 2007, with a growth rate of around 1.7% and 2.3% in 2008. However, the population's standard of living has continued to deteriorate since 2002. Almost half of the population lives under the threshold of poverty. Ivory Coast's economy depends largely on exogenous factors, such as weather conditions and the price of raw materials on the international market.
In the economic crisis context, Ivorian economic activity has been relatively resistant. Even though the unemployment rate has increased, (nearly 16% in 2009), inflation has remained under control (around 3%).
Main branches of industry
Ivory Coast's economy is mainly based on agriculture. The sector contributes almost a fourth of the GDP and employs two-thirds of the country's active population. Ivory Coast is one of the world's biggest producers of cocoa and is one of the biggest exporters of cocoa beans, coffee and palm oil. The country's production of rubber has increased substantially in recent years.
Ivory Coast produces oil and gas. The oil sector is beginning to have more significance in the country's economy, with a growth rate of 1.2% during 2008. There are some mining activities in the country, namely gold, diamonds and nickel. However, in 2005, the UN Security Council banned diamond exports, which were suspected of financing weapons used in the country's civil war.
The industrial sector contributes nearly a fourth of the GDP. The country's main industrial sectors are food-processing, textiles, construction materials, fertilizers, tuna canning, and assembling motorbikes, vehicles and bicycles.
For a number of years, the tertiary sector has been showing rapid growth (3.1% in 2009). Services contribute nearly 50% of the GDP. Today, the telecommunication sector is booming.
International trade
Ivory Coast is the hub of commercial activities in West Africa. The share of foreign trade in the country's GDP is 90%. Ivory Coast is a member of the UEMOA (West African Economic and Monetary Union - website in French only), which enforces a Common External Tariff (CET). It also belongs to the Free Trade Zone (website in French only). Ivory Coast has also signed a stepping stone economic partnership agreement (EPA) with the European Union (EU) in November 2008. This agreement essentially aims to maintain the preferential trade system which exists between the EU and Ivory Coast.
The three main export partners are Germany, Nigeria and the Netherlands. The country mainly exports cocoa (40% of export revenue), mineral fuels and oil, vehicles, wood, ships and boats. Ivory Coast's three main import partners are France, Nigeria, and China. Main import commodities are mineral fuels and oil, vehicles, ships, boats, cereals, and machinery.
In 2009, the trade value dropped by almost 10% in relation to the previous year. This situation can be explained to a large extent, by the effects of the international crisis on the economies of Ivory Coast's main trade partners.
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