The International Monetary Fund lowered its 2024 growth outlook in Senegal to 7.1% compared to 8.3% previously.
The International Monetary Fund (IMF) lowered its 2024 growth forecast in Senegal to 7.1%, due to uncertainty linked to the presidential election in March and a delay in gas production, he announced on May 3 at the from a mission to Dakar.
“Economic growth for 2024 is now projected at 7.1% compared to 8.3% previously, reflecting economic activity impacted in the first quarter by the electoral context and a delayed start of gas production until December 2024”said the Fund in a press release, citing Edward Gemayelhead of the mission which began in Senegal on April 25 and ended Friday May 3.
President Bassirou Diomaye Fayewho calls for a break with the system in place, succeeded President Macky Sall (2012-2024) at the beginning of April after his victory in the first round over the government candidate, former Prime Minister Amadou Bâ.
The commissioning of offshore gas fields shared with Mauritania and developed by the British BP with the American Kosmos Energy, the Mauritanian Hydrocarbons Company (SMH) and Petrosen, initially planned for the end of 2023, is now expected this year.
Growth was 4.6% in 2023, year-long “the Senegalese economy has demonstrated resilience despite a difficult context”.
“The government built up cash reserves in anticipation of the presidential election, which contributed to an increase in central government debt (73.4% of GDP) beyond the debt ceiling set in the framework” of the West African Economic and Monetary Union (UEMOA, 8 countries), says the Fund.
The institution believes that “the economic outlook, however, remains favorable”.
According to the IMF, the new Senegalese power has reaffirmed the commitment to continuing the current program supported by financial institutions whose pillars aim in particular to “reduce debt vulnerabilities”according to the press release.
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