A group from the International Monetary Fund (IMF), led by Mr. Edward Gemayel, carried out a goal to Senegal from April 26 to Might 3, 2024, to analyze the current financial and political growths and lay the ground for the 2nd evaluation under the existing IMF-supported program.
At the final thought of the objective, Mr. Gemayel released the adhering to declaration:
” The Senegalese economic situation in 2023 confirmed durable in spite of difficulties. Regardless of political stress bordering the governmental political election and exterior stress, development amazed on the advantage (4.6 percent), showing a great farming project and a solid tertiary market. Rising cost of living additionally saw a faster-than-anticipated decrease, going down to 5.9 percent. Raised power aids (CFAF 620 billion or 3.3 percent of GDP) and greater passion settlements were countered by cuts in financial investments in order to include the financial deficiency at 4.9 percent of GDP, in accordance with the program target. Furthermore, the federal government has actually constructed liquidity barriers in expectancy of the governmental political election, adding to a surge in main national debt (73.4 percent of GDP) over the WAEMU ceiling. The bank account deficiency continued to be big (18.8 percent of GDP), showing ongoing weak exports of items.
Financial task in 2024Q1 was weak than prepared for, showing political unpredictabilities connected to the governmental political election. High regularity signs recommend that financial task was controlled as organizations delayed financial investments and customers reduced on costs. Heading rising cost of living decreased to 3.3 percent (Y-o-Y). Spending plan implementation was noted by an income shortage and an overrun in the power aid. The expectation, nonetheless, stays desirable. Financial development for 2024 is currently predicted at 7.1 percent below 8.3 percent, showing weak financial task because of the selecting context and hold-ups in gas manufacturing to December 2024.
Initial end-2023 information recommend that the program stays generally on the right track. Nevertheless, fulfilling the end-2024 financial deficiency target of 3.9 percent of GDP will certainly call for enthusiastic procedures to minimize tax obligation exceptions and improve investing performance. This ought to be done with an additional spending plan that would certainly lead the way in the direction of getting to the local target of 3 percent of GDP in 2025.
More initiatives are required to progress the architectural reform program, particularly, modifying the oil item prices formula and carrying out an audit of the power firm SENELEC in order to apply a brand-new power toll framework, with a social toll to sustain susceptible houses. Moreover, the authorities are advancing on procedures to leave the Financial Activity Job Pressure’s (FATF) grey listing.
The brand-new authorities have actually declared their dedication to the existing IMF-supported program. They identify that the program’s core columns line up with their very own critical objectives, particularly: improving financial strength and decreasing financial obligation susceptabilities, enhancing administration, advertising architectural improvement, and structure strength to environment adjustment.
The IMF group desires to give thanks to the authorities and various other equivalents for their exceptional participation, and honest and useful conversations throughout the browse through. Conversations for the 2nd evaluation under the Extended Credit Report Center (ECF), the Extended Fund Center (EFF) and the Durability and Sustainability Center (RSF) setups are tentatively prepared for June 2024.
Throughout the browse through, the IMF group met His Excellency, Head Of State Ousmane Sonko; Mr. Cheikh Diba, Priest of Money and Spending plan; and various other elderly federal government authorities. The IMF group additionally had effective conversations with agents of business area and growth companions.”
Distributed by APO Team in support of International Monetary Fund (IMF).
