DAKAR: Growth in Senegal’s economy is expected to accelerate in 2023 but still come in lower than expected, IMF mission chief Edward Gemayel said on Tuesday following a staff-level visit.
He said in November that the West African country’s economy was expected to grow 8.3% in 2023 on the back of a temporary boost from oil and gas production.
“If oil production starts at the end of the year as expected, GDP growth is seen at around 8%, however, if it is delayed until next year, growth is forecast at 5% or 5.3%,” Gemayel told reporters.
The International Monetary Fund has also lowered Senegal’s 2022 gross domestic product (GDP) estimate to 4% from 4.7% due to a fall in agriculture and industrial output, Gemayel said.
No formal talks have started on a new Senegal programme, Gemayel said, adding that negotiations would begin on the sidelines of the IMF spring meeting.
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Gemayel said the fund and the government of Senegal have exchanged ideas around a three-year programme that would focus on three key areas, including the strengthening of the West African nation’s finances.
“There is a need to consolidate public finances and reduce Senegal’s debt. The debt is sustainable at a moderate level for now,” the leader of the IMF mission said.
He added that Senegal was also in talks to benefit from a new IMF programme focused on climate resilience.
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