The sovereign ratings on Burkina Faso remain constrained by the country's very low level of development, with GDP per capita among the lowest in the world at below $600. This leaves Burkina Faso's narrow economy very vulnerable to external shocks and with very little flexibility to react to economic challenges. Moreover, the current economic environment, characterized by upward pressure on energy and food prices and an appreciating currency that is pegged to the euro, will further weaken Burkina Faso's already minimal external and fiscal flexibility. Standard&Poor's Ratings Services estimates the general government deficit (excluding grants) at 12% of GDP in 2008 and at about 13% of GDP in 2007. Although we expect the deficit to continue to be
