IMF Staff Concludes Visit to Senegal

IMF News, September 7, 2023

Source details

Mission leader: Mr. Edward Gemayel.
Mission dates: August 31 to September 7, 2023.
Purpose: take stock of recent economic developments; update growth and budget forecasts; discuss the draft 2024 budget.
Press Release No.: 23/307.
Press contact listed: PRESS OFFICER: Tatiana Mossot; Phone: +1 202 623-7100; Email: MEDIA@IMF.org; @IMFSpokesperson.

GDP growth projection for 2023 revised downward to 4.1 percent due to a slowdown in commerce and services in the first half of 2023.
Year-on-year inflation:
- Fell to 5.7 percent in July 2023.
- Forecast for average inflation in 2023 revised to 6.1 percent, reflecting new inflationary pressures from some food staples (rice, onion, sugar).
Budget execution through end-June 2023: broadly in line with program objectives.
Note on hydrocarbon production: delayed start until the second half of next year.

Real GDP growth projected in 2024 to 8.8 percent, boosted by the start of oil and gas production.
Non-hydrocarbon growth in 2024 expected to pick up to 6 percent.
2024 draft budget targets a fiscal deficit of 3.9 percent of GDP.
Energy subsidies: 1 percent of GDP in 2024; the authorities need to take all necessary measures to ensure gradual elimination as committed in the roadmap adopted last January.

Meeting end-December program targets will require additional efforts in revenue collection.
The authorities are encouraged to:
- Streamline tax exemptions.
- Implement the medium-term revenue strategy.
- Pursue fiscal consolidation efforts to rebuild buffers and rein in rising public debt vulnerabilities.

Progress welcomed on reform measures under the program supported by the Resilience and Sustainability Facility.
Near-term reforms highlighted:
- Adoption of a decree to integrate climate considerations into all stages of public investment management.
- Definition of strategic priorities to move towards greener public transportation.
Authorities committed to making building resilience to climate change a central pillar of the updated national development strategy (PAP3), which is expected to be finalized by the end the year.

IMF team thanks authorities and counterparts for cooperation and constructive discussions.
Discussions for the first review under ECF/EFF/RSF arrangements are planned for October 2023.
Meetings during the visit included:
- His Excellency Prime Minister Amadou Ba.
- Mr. Mamadou Moustapha Ba, Minister of Finance and Budget.
- National Director of the BCEAO, Mr. Ahmadou Al Aminou Lo.
- Senior government officials.

IMF Communications Department — September 7, 2023.