Senegal: 2021 Article IV Consultation, Fourth Review Under the Policy Coordination Instrument, First Reviews Under the Stand-By Arrangement and the Arrangement Under the Standby Credit Facility, and Request for Modification of Performance Criteria and Quantitative Targets
IMF Staff Country Reports, January 14, 2022
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- Senegal: 2021 Article IV Consultation, Fourth Review Under the Policy Coordination Instrument, First Reviews Under the Stand-By Arrangement and the Arrangement Under the Standby Credit Facility, and Request for Modification of Performance Criteria and Quantitative Targets
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Bibliographic details
- Published: January 14, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781616358891.002
Key findings and summary
- The COVID-19 pandemic interrupted a decade of high growth and development progress in Senegal.
- A recession was avoided in 2020, but the pandemic caused severe hardship and most households experienced income and job losses.
- A dynamic recovery is underway since mid-2020, supported by expansionary fiscal policy.
- Higher fiscal deficits and lower growth have resulted in a rapid increase of the debt-to-GDP ratio and fiscal space is narrowing.
- COVID-19 case numbers remain comparatively low and about 14 percent of the adult population is vaccinated.
- Recent pandemic waves had little impact on economic activity in the absence of new lockdowns or movement restrictions.
Macroeconomic outlook and recovery
- Recovery dynamics: dynamic recovery since mid-2020 driven by expansionary fiscal policy.
- Labor and incomes: most households experienced income and job losses during the pandemic.
- Growth vs. deficits: lower growth combined with higher fiscal deficits have pressured public finances and reduced fiscal space.
Fiscal position and public debt
- Fiscal policy: expansionary measures supported the recovery but contributed to higher fiscal deficits.
- Debt developments: rapid increase of the debt-to-GDP ratio is highlighted as a key risk and fiscal space is narrowing.
COVID-19 epidemiological and vaccination context
- Case numbers: described as comparatively low.
- Vaccination: about 14 percent of the adult population is vaccinated.
- Impact of waves: recent pandemic waves had little impact on economic activity provided there were no new lockdowns or movement restrictions.
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