## IMF Staff Concludes Visit to Senegal

_IMF News, September 7, 2023_

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## Bibliographic details
- Published: September 7, 2023

---

### Mission overview
- 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.

### Recent macroeconomic developments and revisions
- 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.

### Outlook and projections for 2024
- 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.

### Fiscal policy assessment and recommendations
- 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.

### Structural reforms and climate resilience
- 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.

### Cooperation, meetings, and next steps
- 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.*

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## References

- [Senegal and the IMF](http://www.imf.org/external/country/SEN/index.htm)
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- [PRESS CENTER](http://presscenter.imf.org/)
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_Source: https://www.imf.org/en/news/articles/2023/09/07/pr23307-senegal-imf-staff-concludes-visit_