IMF Staff Country Reports

Senegal: Requests for an Extended Arrangement Under the Extended Fund Facility, an Arrangement Under the Extended Credit Facility, and an Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Senegal

Publication Date:

July 7, 2023

Electronic Access:

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Summary:

A cascade of external and domestic shocks –including the COVID-19 pandemic, rising global commodity prices and global economic slowdown linked to the Russian invasion of Ukraine, Ecowas sanctions against Mali, the US dollar appreciation, domestic spending pressures, and tightened global and regional financing conditions–have dampened economic activity in 2022, widened external and fiscal deficits, increased debt levels, and eroded regional international reserves. The challenging external environment, together with likely delays in the start of hydrocarbon production, will continue to weigh on economic activity in 2023. In the medium term, economic prospects remain favorable, with the temporary boost of oil and gas production, but ambitious reforms are needed to reduce macroeconomic imbalances, put debt on a downward trajectory, and make growth more inclusive. The impact of climate change in Senegal is projected to be severe and reforms to adapt to climate change while contributing to lower greenhouse emission rank high on the Senegalese authorities’ agenda.

Series:

Country Report No. 2023/250

Subject:

Budget planning and preparation Climate change Environment External debt International organization Monetary policy Public debt Public financial management (PFM) Revenue administration

Frequency:

regular