The International Monetary Fund (IMF) has revised downward its economic growth projections for Senegal owning to shocks that have hit the agricultural and tourism sectors.
According to Britton woods institution, the West Africa nation will record a growth of 4.5 per cent in 2014 down from an earlier projection of 4.8 per cent.
“The outlook for 2014 remains positive. IMF expects economic growth to reach 4.5 per cent, slightly below earlier estimates, reflecting the late start of the rainy season and an expected softening in the tourism sector,” said Ali Mansoor, who led an IMF mission for Article IV consultations in the country.
The mission noted that economic performance during the first half of the year was satisfactory in that growth picked up and inflation remained low.
Budget execution was also satisfactory, with revenue exceeding the program target. The good revenue performance combined with expenditure restraint resulted in a lower budget deficit than programmed in the first half of the year.
“The mission welcomes the commitment of the authorities to continue to conduct a sound fiscal policy, including by maintaining their original budget deficit target of 5.1 per ceny of GDP for 2014,” noted Mansoor.
He added the ambitious Plan Senegal Emergent (PSE) requires the maintenance of a sound economic framework and the acceleration of reforms to enhance productivity and improve the business environment.
The mission welcomed Senegal’s commitment to implement the PSE while maintaining sound public finances and sustainable debt levels.
It also encouraged the country to accelerate the implementation of structural reforms, which are essential for the success of the PSE. These include measures to improve the business climate and governance and to deepen the financial sector. Reforms should also be enhanced in the energy sector to boost electricity generation while achieving a lower cost.
International Monetary Fund (IMF)