Senegal: Request for a Three-Year Policy Coordination Instrument-Press Release; Staff Report; and Statement by the Executive Director for Senegal

IMF Staff Country Reports, January 17, 2020

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Canonical URL: Senegal: Request for a Three-Year Policy Coordination Instrument-Press Release; Staff Report; and Statement by the Executive Director for Senegal

The PCI for Senegal is a Three-Year Policy Coordination Instrument intended to build on lessons from previous IMF-supported programs.
Aims:
- Support the authorities’ efforts to consolidate macroeconomic stability.
- Foster sustained and inclusive growth.
- Manage the oil and gas sector in a transparent manner.
The authorities’ economic program supported by the PCI focuses on:
- Achieving high, sustainable, and inclusive growth.
- Consolidating macroeconomic stability through prudent fiscal policy and sound debt management.
- Transparent management of oil and gas resources.

Program reviews take place on a semi-annual fixed schedule.
The PCI involves no use of IMF resources.
Successful completion of program reviews would help signal Senegal’s commitment to continued strong economic policies and structural reforms.

Observations:
- Public debt has increased.
- The current account deficit has widened.
Outlook:
- Remains favorable, provided the authorities follow through with their comprehensive reform strategy and measures to consolidate macroeconomic stability.

Emphasized policy directions:
- Prudent fiscal policy.
- Sound debt management.
- Structural reforms to support inclusive growth.
- Transparent management of the oil and gas sector.
Signaling mechanism:
- Completion of semi-annual program reviews serves as a signal of commitment to policy continuity and reform implementation.