{
  "title": "IMF Staff Concludes Visit to Senegal",
  "publication": "IMF News, October 6, 2022",
  "sourceUrl": "https://www.imf.org/en/news/articles/2022/10/06/pr22339-senegal-imf-staff-concludes-visit-to-senegal",
  "canonical": "https://www.imf.org/en/news/articles/2022/10/06/pr22339-senegal-imf-staff-concludes-visit-to-senegal",
  "overlayPath": "/en/news/articles/2022/10/06/pr22339-senegal-imf-staff-concludes-visit-to-senegal/index.md",
  "summary": "IMF Staff Concludes Visit to Senegal",
  "authors": [
    "Credit Facility"
  ],
  "publishDate": "2022-10-06",
  "sections": [
    {
      "heading": "Mission summary and context",
      "content": "- Mission dates: September 29 to October 6, 2022.\n- Mission leader: Mr. Edward Gemayel.\n- Purpose: take stock of recent economic developments, update growth and budget forecasts, and discuss the draft 2023 budget.\n- Meetings: Prime Minister Amadou Ba; Mr. Mamadou Moustapha Ba, Minister of Finance and Budget; the National Director of the BCEAO, Mr. Ahmadou Al Aminou Lo; and senior government officials."
    },
    {
      "heading": "Recent economic developments and outlook",
      "content": "- Activity slowdown and growth revision:\n  - Activity in the secondary and services sectors slowed in the first half of 2022.\n  - Growth projection for 2022 revised downward to 4.7 percent.\n- Inflation and prices:\n  - Inflation reached a multi-decade high of 11.2 percent in August y/y.\n  - Food prices rose by 17.3 percent (August y/y).\n  - Average inflation in 2022 is now expected to reach 7.5 percent.\n  - Inflation is expected to gradually fall to 2 percent (medium term).\n- Fiscal position and public finances:\n  - Revenue collection through end-September was stronger than expected.\n  - Soaring energy subsidies are crowding out investment spending in 2022.\n  - The government envisages delaying some projects to contain the fiscal deficit at the targeted level of 6.2 percent of GDP.\n  - Fiscal consolidation projected in the 2023 budget is judged insufficient given tight financing constraints and rising public debt vulnerabilities.\n- Medium-term growth projection:\n  - Growth outlook appears favorable, averaging around 10 percent over the period 2023 and 2024, boosted by oil and gas production."
    },
    {
      "heading": "Key findings",
      "content": "- The impacts of the war in Ukraine and soaring commodity prices are taking a toll on the Senegalese economy.\n- Rising food prices are adversely impacting household living standards.\n- Soaring energy subsidies constitute a major fiscal challenge, reducing space for investment despite solid revenue performance."
    },
    {
      "heading": "Policy recommendations and reform priorities",
      "content": "- Fiscal measures:\n  - Pursue revenue collection efforts more forcefully.\n  - Eliminate costly tax exemptions.\n  - More forcefully implement the medium-term revenue strategy.\n  - Set higher revenue collection targets.\n  - Implement credible commitments to phase out energy subsidies in the short to medium term.\n  - Reduce energy subsidies while protecting the most vulnerable in a targeted way.\n- Public procurement and energy sector governance:\n  - Streamline exemptions to the public procurement code for the energy sector.\n  - Finalize the revision of the legal framework to strictly limit exemptions to open and competitive tenders.\n- Subsidy management:\n  - Prepare and execute the roadmap for the control and better targeting of energy subsidies.\n- Objective: rebuild depleted fiscal buffers and set public debt on a downward trajectory; strengthen resilience to multiple shocks and build buffers to address future shocks."
    },
    {
      "heading": "Next steps and IMF engagement",
      "content": "- Discussions for the final review under the Policy Coordination Instrument, the Stand-By Arrangement, and the Stand-By Credit Facility are planned for early November 2022.\n- The IMF team reaffirmed support to the government’s efforts to implement its economic reform program.\n\nIMF Communications Department; Press Release No. 22/339; October 6, 2022.\n\n---\n\n\n References\n\n- Senegal and the IMF\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2022/10/06/pr22339-senegal-imf-staff-concludes-visit-to-senegal"
    }
  ],
  "bullets": [
    "[Markdown version](/en/news/articles/2022/10/06/pr22339-senegal-imf-staff-concludes-visit-to-senegal/index.md)",
    "[Structured JSON version](/en/news/articles/2022/10/06/pr22339-senegal-imf-staff-concludes-visit-to-senegal/index.json)",
    "[Bundle manifest](/en/news/articles/2022/10/06/pr22339-senegal-imf-staff-concludes-visit-to-senegal/bundle-manifest.json)",
    "Authors: Credit Facility",
    "Published: October 6, 2022",
    "Mission dates: September 29 to October 6, 2022.",
    "Mission leader: Mr. Edward Gemayel.",
    "Purpose: take stock of recent economic developments, update growth and budget forecasts, and discuss the draft 2023 budget.",
    "Meetings: Prime Minister Amadou Ba; Mr. Mamadou Moustapha Ba, Minister of Finance and Budget; the National Director of the BCEAO, Mr. Ahmadou Al Aminou Lo; and senior government officials.",
    "Activity slowdown and growth revision:",
    "Inflation and prices:",
    "Fiscal position and public finances:",
    "Medium-term growth projection:",
    "The impacts of the war in Ukraine and soaring commodity prices are taking a toll on the Senegalese economy.",
    "Rising food prices are adversely impacting household living standards.",
    "Soaring energy subsidies constitute a major fiscal challenge, reducing space for investment despite solid revenue performance.",
    "Fiscal measures:",
    "Public procurement and energy sector governance:",
    "Subsidy management:",
    "Objective: rebuild depleted fiscal buffers and set public debt on a downward trajectory; strengthen resilience to multiple shocks and build buffers to address future shocks.",
    "Discussions for the final review under the Policy Coordination Instrument, the Stand-By Arrangement, and the Stand-By Credit Facility are planned for early November 2022.",
    "The IMF team reaffirmed support to the government’s efforts to implement its economic reform program.",
    "[Senegal and the IMF](http://www.imf.org/external/country/SEN/index.htm)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
  ],
  "alternates": {
    "markdown": "/en/news/articles/2022/10/06/pr22339-senegal-imf-staff-concludes-visit-to-senegal/index.md",
    "json": "/en/news/articles/2022/10/06/pr22339-senegal-imf-staff-concludes-visit-to-senegal/index.json",
    "bundleManifest": "/en/news/articles/2022/10/06/pr22339-senegal-imf-staff-concludes-visit-to-senegal/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-26T01:32:38.311Z"
}