A mission from the International Monetary Fund (IMF), which stayed in Dakar from April 27 to May 11, 2023, estimated, at the end of its working stay, that total GDP growth in Senegal could stand at above beyond 8% in 2023, if oil and gas production starts in the fourth quarter of this year.
But Fund experts have warned that for 2023, the slowing global economy and tighter financial conditions will weigh on the expected recovery in economic activity. Nonhydrocarbon GDP growth is now projected at 5.3% in 2023 (compared to an initial projection of 6%).
The 2022 analysis finds, according to them, that a confluence of external shocks linked largely to the war in Ukraine weighed on the post-Covid-19 recovery, affected public finances, widened the current account deficit foreign exchanges, increased debt levels and eroded the region’s international foreign exchange reserves (WAEMU).
The IMF mission, led by Edward Gemayel, aimed to discuss the Senegalese authorities’ request for a new financing agreement.
The statement made by Gemayel, at the end of the visit, also indicates that the IMF team and the Senegalese authorities have reached an agreement on the economic and financial policies which could be supported by the Extended Credit Mechanism (ECM). and the Extended Credit Facility (ECF).
The agreement will be for 36 months with access of US$1.526 billion, combined with the Resilience and Sustainability Facility (RSF) of US$327.1 million.
The political priorities under the MEC/FEC program relate to the reduction of debt vulnerabilities through a reduction in the budget deficit, the strengthening of financial governance and the anti-money laundering system and the fight against the financing of terrorism. , and the implementation of reforms for more inclusive and job-rich growth.
The FRD will support Senegal’s climate change mitigation goals, accelerate the country’s adaptation to climate change, and support work to integrate climate change considerations into the budget process.
The IMF staff arrangement is subject to approval by IMF management and the Executive Board. Board review is tentatively scheduled for mid-June 2023.
By OMA Newsletter N° 1169 of 12/05/2023
Article published under the direction of Dr. Najib Kettani
The OMA, NGO with an Intercontinental vocation
For the development of cultural exchanges
Valuing human potential
The promotion and consolidation of Africa’s development, and
Inter-African integration
