Conclusion at the end of the mission in Senegal: the IMF remains “optimistic about the economic outlook, with a projection of economic growth of 7.1% for 2024”

Conclusion at the end of the mission in Senegal: the IMF remains “optimistic about the economic outlook, with a projection of economic growth of 7.1% for 2024”
Conclusion at the end of the mission in Senegal: the IMF remains “optimistic about the economic outlook, with a projection of economic growth of 7.1% for 2024”

XALIMANEWS-The first period of the year saw economic activity in Senegal lower than expected, attributed to political uncertainties surrounding the presidential elections. However, IMF officials note that despite these challenges, the economic outlook remains favorable.

”The growth in economic activity in the first quarter of 2024 was weaker than [ce qui était] planned, due to the political uncertainties linked to the presidential election”, observe the members of this mission in a press release.

During this period, economic growth was moderate, with a decline in business investment and consumer spending.

Inflation also declined to 3.3% year-on-year, but budget execution was affected by lower revenues and energy spending exceeding the initial budget.

Despite these challenges, IMF officials remain optimistic about the economic outlook, with economic growth projected at 7.1% for 2024, up from 8.3% previously forecast.

They also note that the electoral context and the delay in gas production impacted Senegalese economic activity in the first quarter.

“The program supported by the IMF [au Sénégal] remains generally on the right track. However, achieving the budget deficit target of 3.9% of GDP (gross domestic product) set for the end of 2024 will require ambitious measures to rationalize tax expenditures and improve spending efficiency. ”, suggest the officials of the financial institution.

The mission which stayed in Dakar from April 25 to May 3 affirms that ”the new authorities [sénégalaises] reaffirmed their commitment to continuing the current program supported by the [fonds monétaire international]”.

”In 2023, the Senegalese economy demonstrated resilience despite a difficult context. Despite political tensions around the presidential election and external shocks, economic growth exceeded expectations (4.6%) reflecting a good agricultural campaign and a solid tertiary sector,” underlined Edward Gemayel, head of the mission of the IMF.

He recalls that inflation fell more quickly than expected, falling to 5.9%.

High spending on energy subsidies (620 billion CFA francs, or 3.3% of GDP) and interest on the debt were offset by reductions in investment spending, in order to contain the budget deficit at 4.9% of GDP, note Mr. Gemayel and his colleagues.

They also recommend placing emphasis on structural reforms, such as revising the formula for determining oil prices and carrying out an audit of the electricity company, Senelec.

Finally, the IMF mission highlights the excellent cooperation and constructive discussions with the Senegalese authorities and their economic partners, highlighting the resilience of the Senegalese economy despite political and external challenges.

-

-

PREV Canada in the final four
NEXT lightning strikes a football field, one dead and one seriously injured