The WAEMU was among the fastest growing regions in the world in 2025, with low inflation and external reserves at comfortable levels following a sharp recovery. Fiscal deficits narrowed and public debt declined for the first time in over a decade. The region faces significant downside risks, notably from the war in the Middle East, high debt burdens and elevated sovereign financing needs, a strong sovereign-bank nexus with pockets of financial sector vulnerability, and exposure to security and climate shocks. [...]