End-of-mission press releases contain statements from IMF staff teams who report on their preliminary findings after their visit to a country. The views expressed in this statement are those of IMF staff and are not necessarily those of the Executive Board. Based on the preliminary findings of this mission, IMF staff will prepare a report which, subject to management approval, will be presented to the Executive Board for consideration and decision.

Washington DC: A < a href="javascript:void(0);">International Monetary Fund (IMF), led by Ms. Corinne Deléchat, conducted a virtual mission from November 5 to 16, 2020 to conduct discussions as part of the second review of the agreement with the IMF under the Economic Policy Coordination Instrument (IPCI), approved in January 2020. At the end of the mission, Ms. Deléchat made the following statement:

"The IMF staff team has reached an agreement with the authorities on economic and financial measures that could lead to the approval of the second review of their three-year program under the ICPE. The IMF Executive Board may review this review in the first half of January 2021.

The pandemic had a significant economic impact in the first half of 2020, but the recovery appears to be stronger than expected, reflecting the easing of lockdown measures, the steady decline in the number of infections and hospitalizations since August and a favorable outlook for the 2020-21 crop year. As a result, the 0.7% economic contraction forecast for 2020 could be avoided. This growth momentum is expected to continue until 2021, with activity recovering by around 5%. However, this favourable outlook is subject to considerable uncertainty and will depend largely on the evolution of the pandemic around the world and in Senegal.

Budget implementation has been generally satisfactory and is expected to result in a deficit of around 6.5% of GDP in 2020. This figure is in line with the objective of the programme, adjusted for a loss in value in grants due to the delay to 2021 of budget support planned for 2020. The mission commends the authorities for the excellent implementation of the Economic and Social Resilience Program (PRES), which has helped cushion the impact of the pandemic. The mission welcomes the commitments made by the authorities regarding transparency and accountability in the execution of COVID-19-related expenditures, including the continued publication of regular reports on budget implementation, the publication of the report of the monitoring committee of the "Force COVID-19" fund and the audit of the Court of Auditors

The results of the ICPE programme remain strong. By the end of June, five of the seven quantitative targets had been met. Reform objectives related to the completion of the medium-term revenue strategy, the conduct of expenditure chain studies and the removal of barriers to girls' education, as well as the establishment of the National Public Debt Committee (CNDP) have also been addressed. te reached.

The mission notes with satisfaction the priorities of the 2021 budget bill, which aims to support the recovery while setting the course for a gradual return, by 2023, to the threshold set by the WAEMU in terms of deficit. The Mission and the authorities agree on the importance of increasing revenues in order to achieve fiscal consolidation objectives. In particular, the mission stresses the need to rationalize exemptions and welcomes the authorities' commitment to republish an annual report on tax expenditures, which will also be attached to the budget documents, as well as to improve oil-related taxation. The strengthening of public financial management will continue in 2021, in particular through the changeover to the programme budget and the reduction, enshrined in the 2021 budget bill, of expenditure implemented through deposit accounts.

The mission notes with satisfaction that the authorities intend to update and expand the single national register of vulnerable households in order to facilitate the expansion of social safety nets after the pandemic. The mission highlights the need to continue ongoing reforms to improve the business climate, including the "Compact with Africa" reforms and the streamlining of SME support entities and funds, which are essential for inclusive private sector-led growth. The mission notes the progress made in revising the legal framework for public-private partnerships (PPPs) and in defining an appropriate legal framework to manage hydrocarbon revenues, and made recommendations to maintain the alignment of these draft laws with international best practices.