Estimating Potential Output in Niger

Potential growth in Niger is estimated at around 6 percent with a structurally significant contribution of labor and peaks of growth associated with higher investment in physical capital. Growth in Niger is, however, constrained by weak productivity, limited structural transformation, and inadequate economic diversification, with downside risks stemming mainly from regional insecurity and adverse climate shocks. Key factors that could boost economic growth in Niger include investment in human capital, the development of the extractive sector and agro-industrial value chains and the diffusion of digital technologies.