Senegal sees its economic growth forecasts revised downwards for the year 2024, according to an announcement from the International Monetary Fund (IMF) following a mission to Dakar.
The new forecast pegs growth at 7.1%, compared to an earlier estimate of 8.3%. The revision is attributed to several factors, including uncertainty surrounding the March presidential election and a delay in gas production.
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Edward Gemayel, head of the IMF mission, emphasizes that economic growth in the first quarter of 2024 was lower than expected, mainly due to political uncertainties linked to the presidential election. This situation has led businesses to postpone their investments and consumers to reduce their spending. Inflation also fell to 3.3% year-on-year.
Furthermore, the execution of the budget was marked by a reduction in revenue and an excess of the costs of energy subsidies compared to the initial budget forecasts. Despite these challenges, the IMF emphasizes that the economic outlook remains generally favorable for Senegal. However, the revised growth projection reflects the impact of political uncertainty in the first quarter and the delay in gas production, now scheduled for December 2024.
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The IMF also notes that the new Senegalese government has reaffirmed its commitment to continuing the current program, with a particular focus on reducing debt vulnerabilities. This approach aims to strengthen economic stability and promote sustainable growth in the country.
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