{ "title": "IMF Executive Board Completes Sixth Review Under the Policy Support Instrument (PSI) for Senegal", "publication": "IMF News, July 2, 2018", "sourceUrl": "https://www.imf.org/en/news/articles/2018/07/02/pr18271-imf-executive-board-completes-sixth-review-for-senegal", "canonical": "https://www.imf.org/en/news/articles/2018/07/02/pr18271-imf-executive-board-completes-sixth-review-for-senegal", "overlayPath": "/en/news/articles/2018/07/02/pr18271-imf-executive-board-completes-sixth-review-for-senegal/index.md", "summary": "The PSI for Senegal was approved on June 24, 2015.", "publishDate": "2018-07-02", "sections": [ { "heading": "Program purpose and status", "content": "- The PSI for Senegal was approved on June 24, 2015.\n- The Executive Board completed the sixth review of Senegal’s economic performance under the PSI and approved the authorities’ request for waiver of non-observance and modification of assessment criteria.\n- The program aims to implement economic policies and structural reforms needed to sustain strong growth and ongoing fiscal consolidation and to meet the regional WAEMU fiscal criteria." }, { "heading": "Macroeconomic performance", "content": "- Growth reached 7.2 percent in 2017.\n- Inflation remained low (no numerical inflation figure provided in the source).\n- The recent rebasing of GDP has increased nominal levels by about 30 percent.\n- The fiscal deficit was contained to 3 percent of GDP in 2017 but was revised upwards for 2018." }, { "heading": "Fiscal developments and public finances", "content": "- Public finances deteriorated, driven mainly by unchanged prices for domestic energy products in the face of higher global energy prices.\n- The 2018 fiscal deficit was revised upwards to 3.5 percent.\n- New fiscal measures somewhat offset the deterioration in public finances.\n- Progress reported in reducing weaknesses in treasury operations and containing additional financing needs.\n- A timebound plan to address accumulated energy sector obligations is needed.\n- Improvements in debt management and debt coverage are needed to support fiscal sustainability." }, { "heading": "Policy recommendations and authorities’ commitments", "content": "- Authorities remain committed to PSI fiscal targets.\n- Over the medium term, the following measures were identified to create space to finance development needs sustainably:\n - Increased revenues through improving administration and lowering tax expenditures.\n - Improved public investment efficiency.\n - Energy price reform.\n- Further implementation of structural reforms and efforts to attract private investment are needed to consolidate high growth.\n- Specific impediments to address include:\n - Access to credit.\n - Cost of energy.\n - Taxation issues.\n - Business environment improvements, including further development of special economic zones (three of which are now operational)." }, { "heading": "Risks and vulnerabilities", "content": "- Risks to Senegal’s economy have increased but remain manageable.\n- Domestic risks: Lack of progress on structural fiscal issues such as revenue mobilization, energy subsidies, and reforms to reduce the treasury’s additional financing needs could undermine fiscal sustainability.\n- External risks: Security risks in the region could adversely affect investment and growth." }, { "heading": "Official statement highlights (Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair)", "content": "- “Senegal’s reform efforts, as laid out in the Plan Sénégal Emergent (PSE) and aided by the Policy Support Instrument (PSI), have helped to increase growth while maintaining economic stability.”\n- Emphasis on consolidating high growth by implementing structural reforms and attracting private investment, with opportunities for all.\n\nPress Release No. 18/271, July 2, 2018, IMF Communications Department.\n\n---\n\n\n References\n\n- https://www.imf.org/-/media/images/imf/bios/imfboard.jpg\n- The Executive Board\n- PRESS CENTER\n- 1\n- Press Release No. 15/297\n- http://www.imf.org/external/np/exr/facts/psi.htm\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2018/07/02/pr18271-imf-executive-board-completes-sixth-review-for-senegal" } ], "bullets": [ "[Markdown version](/en/news/articles/2018/07/02/pr18271-imf-executive-board-completes-sixth-review-for-senegal/index.md)", "[Structured JSON version](/en/news/articles/2018/07/02/pr18271-imf-executive-board-completes-sixth-review-for-senegal/index.json)", "[Bundle manifest](/en/news/articles/2018/07/02/pr18271-imf-executive-board-completes-sixth-review-for-senegal/bundle-manifest.json)", "Published: July 2, 2018", "The PSI for Senegal was approved on June 24, 2015.", "The Executive Board completed the sixth review of Senegal’s economic performance under the PSI and approved the authorities’ request for waiver of non-observance and modification of assessment criteria.", "The program aims to implement economic policies and structural reforms needed to sustain strong growth and ongoing fiscal consolidation and to meet the regional WAEMU fiscal criteria.", "Growth reached 7.2 percent in 2017.", "Inflation remained low (no numerical inflation figure provided in the source).", "The recent rebasing of GDP has increased nominal levels by about 30 percent.", "The fiscal deficit was contained to 3 percent of GDP in 2017 but was revised upwards for 2018.", "Public finances deteriorated, driven mainly by unchanged prices for domestic energy products in the face of higher global energy prices.", "The 2018 fiscal deficit was revised upwards to 3.5 percent.", "New fiscal measures somewhat offset the deterioration in public finances.", "Progress reported in reducing weaknesses in treasury operations and containing additional financing needs.", "A timebound plan to address accumulated energy sector obligations is needed.", "Improvements in debt management and debt coverage are needed to support fiscal sustainability.", "Authorities remain committed to PSI fiscal targets.", "Over the medium term, the following measures were identified to create space to finance development needs sustainably:", "Further implementation of structural reforms and efforts to attract private investment are needed to consolidate high growth.", "Specific impediments to address include:", "Risks to Senegal’s economy have increased but remain manageable.", "Domestic risks: Lack of progress on structural fiscal issues such as revenue mobilization, energy subsidies, and reforms to reduce the treasury’s additional financing needs could undermine fiscal sustainability.", "External risks: Security risks in the region could adversely affect investment and growth.", "“Senegal’s reform efforts, as laid out in the Plan Sénégal Emergent (PSE) and aided by the Policy Support Instrument (PSI), have helped to increase growth while maintaining economic stability.”", "Emphasis on consolidating high growth by implementing structural reforms and attracting private investment, with opportunities for all.", "[https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg)", "[The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx)", "[PRESS CENTER](http://presscenter.imf.org/)", "[1](http://www.imf.org/external/np/sec/pr/2015/pr15549.htm)", "[Press Release No. 15/297](http://www.imf.org/external/np/sec/pr/2015/pr15297.htm)", "[http://www.imf.org/external/np/exr/facts/psi.htm](http://www.imf.org/external/np/exr/facts/psi.htm)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2018/07/02/pr18271-imf-executive-board-completes-sixth-review-for-senegal/index.md", "json": "/en/news/articles/2018/07/02/pr18271-imf-executive-board-completes-sixth-review-for-senegal/index.json", "bundleManifest": 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