Washington DC
: A team from the International Monetary Fund (IMF), led by Mr. Edward
Gemayel, conducted a mission during March 8-14, 2023, to take stock of
recent economic developments, update macroeconomic projections, and discuss
potential options for a new IMF-supported program. The team met with his
excellency Prime Minister Amadou Ba; Mr. Mamadou Moustapha Ba, Minister of
Finance and Budget; Ms. Oulimata Sarr, Minister of Economy, Planning and
Cooperation; Mr. Ahmadou Al Aminou Lo, the National Director of the BCEAO,
senior government officials, development partners, representatives of
business community as well as civil society.
At the end of the mission, Mr. Gemayel issued the following statement:
“The Senegalese economy in 2022 experienced a sharper-than-anticipated
slowdown, with real GDP growth now estimated at about 4 percent against 4.7
percent expected, reflecting a disappointing harvest season and a
contraction in industrial production. Average inflation reached a
multi-decade high of 9.7 percent, largely on account of food inflation.
“Fiscal revenues are estimated to have slightly underperformed, while
current spending exceeded the target on the back of a higher public wage
bill. Energy subsidies reached the record-level of CFAF 692 billion (4
percent of GDP) and to keep the fiscal deficit in check, investment
spending was cut. Public debt is estimated at 75.0 percent of GDP, of which
67.5 percent of GDP for the central government, and the current account
deficit significantly widened on account of higher imports and debt
interest payment.
“For 2023, economic activity is projected to rebound, albeit at a slower
pace than initially envisaged, while inflation will moderate to 5 percent.
The medium-term outlook remains favorable and would benefit from both the
start of oil and gas production and the implementation of structural
reforms aimed at strengthening private sector participation in economic
activity in the context of the phase 3 of the National Development Plan
(PSE).
“Early signs of tighter financing conditions in the regional bond market
call for vigilance and contingency planning. In that context, enhancing
domestic revenue mobilization and streamlining nonpriority spending will
help ease financing pressures, while preserving debt sustainability.
“Negotiations for a new IMF-supported program will begin on the sidelines
of the IMF and WB Spring Meetings and will continue in Dakar in late April.
“The IMF team wishes to thank the Senegalese authorities and various
stakeholders for their hospitality and constructive discussions.”
