Cote d'Ivoire's economy is getting a sweet taste of success, thanks to booming cocoa prices. S&P Global Ratings has upgraded the West African nation's credit rating to BB, one step closer to the coveted investment-grade level. The outlook assigned by S&P is stable.
The upgrade, which places Cote d'Ivoire on par with countries like the Dominican Republic and Brazil, reflects the country's strong economic growth and shrinking budget deficits.
S&P attributed these improvements to robust export revenues, particularly from cocoa, a key ingredient in chocolate production.
"We expect the budget deficit to reach 3% of GDP next year and the external deficit to narrow significantly due to higher cocoa prices and rising hydrocarbon and mining exports," S&P said in a statement.
The surge in cocoa prices, combined with an anticipated 10% increase in the 2024-2025 harvest, has provided a much-needed boost to the economy of Cote d'Ivoire, the world's largest producer of cocoa.