Economic results have been encouraging during the last two years. Inflation was brought under control within months following the parity change, yielding an average inflation of about 26 percent in 1994. The downward trend continued in 1995, with an average inflation of about 8 percent in 1995 and 3.5 percent in 1996. The reduction of inflation was largely accomplished through a restrictive wage policy. Apart from the devaluation which gave the most significant boost to restoring the competitive position of the Ivorian economy, policy changes during 1994 and 1995 in trade, agriculture, and transport have helped foster competition and create new investment opportunities.
Fiscal policy continues to be the cornerstone of the stabilization program.
The Government has since reduced the export tax on these commodities. With regard to the external arrears, all bilateral and multilateral arrears were cleared during the first half of 1994. A commercial debt restructuring agreement is expected to be effective in 1997. In addition, the Boards of both the Bank and the IMF have approved C te d'Ivoire's eligibility in principle for assistance under the HIPC Initiative. It is evident that these structural reforms in combination with the stable macroeconomic situation and the recovery of international cocoa and coffee prices have stimulated private sector activity.