Senegal is expected to achieve a 6% growth this year, the International Monetary Fund announced this week stressing that the figure should accelerate from 2022 thanks to the start of commercial production of hydrocarbons.
Between 2020 and 2021, the West African country’s GDP is expected to grow by 7% driven by private investment, and inflation is forecasted to remain low in the mid-term. However, the current account deficit is first expected to increase until 2021, as a result of imports needed for the construction of hydrocarbon projects, before declining once oil and gas production and exports begin.
As part of a 3-year program supported by the Policy Coordination Instrument (PCI), IMF wants to assist Senegalese authorities in the implementation of a “sustainable and transparent governance framework for newly-discovered hydrocarbon resources.” Let’s note the country is currently in the middle of a corruption scandal over the illegal allocation of two oil and gas fields to businessman Franck Timis by Aliou Sall, President Macky Sall’s brother.
Source: EcoFin