A team from the International Monetary Fund (IMF) carried out a mission to Senegal, from August 31 to September 7, 2023, to take stock of recent economic developments, update growth and budget forecasts, and discuss the draft 2024 budget.

The socio-political situation is tense in Senegal. It weighed on economic activity in the first half of 2023. It also led the IMF to lower its growth forecasts to 4.1% from 5.3% initially expected, at the end of its last mission. After the mission, the head of the IMF mission in Dakar, Gemayel Edwards, issued a statement that said that “the tense socio-political situation weighed on activity in the trade and services sectors during the first half of this year; which led to a downward revision of GDP growth forecasts from 5.3% to 4.1%.” The IMF is also raising its forecast for average inflation in 2023, from 5% to 6.1%

noted that the macroeconomic outlook “remains favorable”, despite this situation and the delay in starting hydrocarbon production. According to Gemayel, “in 2024, real GDP growth is expected to reach 8.8%, driven by the start of oil and gas production. Non-hydrocarbon growth is expected to rise to 6%.”