- GDP (PPP):
- $32.9 billion
- 4.6% 5-year compound annual growth
- $1,310 per capita
- Inflation (CPI):
- Public Debt:
Niger’s economic freedom score is 53.7, making its economy the 126th freest in the 2023 Index. Its score is 1.2 points lower than last year. Niger is ranked 23rd out of 47 countries in the Sub-Saharan Africa region, and its overall score is below the world average but above the regional average.
Progress toward greater economic freedom has been uneven and sluggish. Institutional weaknesses continue to discourage macroeconomic stability and poverty reduction. In particular, the rule of law, a key foundation of economic freedom, remains fragile because of corruption and an inept judicial system that is subject to political interference.
After independence from France in 1960, a single-party military regime ruled Niger until elections led to democratic government in 1993. Mohamed Bazoum won a five-year term as president in a disputed 2021 election. Together, his Nigerien Party for Democracy and Socialism (PNDS) and the Movement for the Rebirth of Niger constitute a parliamentary majority. Challenges include a restive Tuareg population in the North, spillover violence from conflicts in Libya and Mali, and terrorist groups linked to al-Qaeda and the Islamic State. Niger has some of the world’s largest uranium deposits, but its economy is centered on subsistence crops and livestock.
Rule of Law
The overall rule of law is weak in Niger. The country’s property rights score is below the world average; its judicial effectiveness score is below the world average; and its government integrity score is below the world average.
The top individual and corporate tax rates are, respectively, 35 percent and 30 percent. The tax burden equals 10.4 percent of GDP. Three-year government spending and budget balance averages are, respectively, 22.9 percent and –4.9 percent of GDP. Public debt equals 51.2 percent of GDP.
The inadequate regulatory framework hampers private-sector development. Onerous and inconsistent regulations impose substantial costs on business operations. With the labor market poorly developed, much of the labor force works in the informal sector. The most recent available inflation rate is 3.8 percent.
The trade-weighted average tariff rate is 11.0 percent. The inefficient regulatory and legal environment constrains trade and investment. The underdeveloped, weak, and fragmented financial system reflects the small size of the formal economy. Financial inclusion is low.