In 2023, Senegal showcased strong economic resilience with a 4.3% GDP growth driven by the agricultural sector’s success in favorable weather conditions. Despite a slowdown in the services sector due to internet and transport restrictions, Senegal managed to reduce inflation to 5.9% through strict monetary policies.
However, rising fiscal pressures saw public debt increase to 80% of GDP in 2023. The country anticipates challenges and opportunities with the expected hydrocarbon production in 2024.
To navigate this transition, the government plans to reduce energy subsidies, manage public wages effectively, and seek concessional loans to control debt levels.
The labor market has shifted significantly over the years, with a decline in agriculture employment and a rise in trade sector employment. Senegal’s structural transformation requires substantial financing, but the current shortfall is $4 billion.
Despite financial challenges, Senegal aims to integrate transformation agendas into policy frameworks and revise investment codes to improve the business climate. There is also a call for global financial reforms to better support emerging economies like Senegal.
With strategic planning and fiscal discipline, Senegal is not only addressing economic challenges but also laying the foundation for sustained growth and development.
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