Senegal: Recent Economic Developments
Author:
International Monetary Fund
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Publication Date:
20 Aug 2000
eISBN:
9781451833850
Language:
English
Keywords:
ISCR; CR; Senegal; CFA franc; service sector; enterprise; government finance; money stock; export earner; chemicals production; derived chemicals production; Exports; Current account balance; Domestic credit; Current spending; Total expenditures; West Africa
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Public consumption has declined from 12 percent of GDP in 1996 to 10.8 percent in 1999 owing to fiscal consolidation: wage increases are moderate, and other current expenditures have grown slowly. Conversely, private consumption has increased from 75.2 percent of GDP in 1996 to 76.9 percent in 1998, and is estimated to have reached 76.6 percent in 1999. Public investment has increased from 6.4 percent of GDP in 1996 to 7.2 percent of GDP in 1998 and is estimated to have reached 8.2 percent of GDP in 1999, whereas private investment has experienced a downward slide.

Abstract

Public consumption has declined from 12 percent of GDP in 1996 to 10.8 percent in 1999 owing to fiscal consolidation: wage increases are moderate, and other current expenditures have grown slowly. Conversely, private consumption has increased from 75.2 percent of GDP in 1996 to 76.9 percent in 1998, and is estimated to have reached 76.6 percent in 1999. Public investment has increased from 6.4 percent of GDP in 1996 to 7.2 percent of GDP in 1998 and is estimated to have reached 8.2 percent of GDP in 1999, whereas private investment has experienced a downward slide.

Senegal: Basic Data

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Sources: Senegalese authorities; and staff estimates.

Figures for GDP, the composition of GDP, and the GDP deflator are estimates for 1997-99.

Figures include the effect of debt cancellation.

Including Fund credit and short-term liabilities of the central bank. Figures for 1998 and 1999 are based on the end-1998 debt sustainability analysis.

I. Introduction

Senegal is a seaside country of West Africa, belonging to the Sahel, with a population of some 9 million inhabitants. The climate is arid in the north and the center of the country, and humid in the south. The primary sector accounts for almost 20 percent of GDP, with three main areas of production: agriculture (mostly autosubsistence crops and groundnut production); livestock; and fishery, which is now the main export earner. The secondary sector, which also accounts for about 20 percent of GDP, encompasses a variety of economic activities, but depends heavily on agro-industries and phosphates and derived chemicals production, Senegal’s second largest source of export earnings. Senegal’s tertiary sector represents more than 60 percent of GDP, benefiting from, inter alia, the good geographic position of the country, which favors tourism and transit activities with its neighbors. A devaluation of the CFA franc by 50 percent in 19941 affected the structure of the Senegalese economy and restored its international competitiveness after nearly a decade of appreciation of the real effective exchange rate.

1

At that time the CFA franc was pegged to the French franc. Since January 1999, it is pegged to the Euro at a rate of 655.96 FCFA per Euro.

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Cover IMF Staff Country Reports
Senegal: Recent Economic Developments
Author:
International Monetary Fund
Volume/Issue:
Volume 2000: Issue 091
Publisher:
International Monetary Fund
ISBN:
9781451833850
ISSN:
1934-7685
Pages:
126
DOI:
https://doi.org/10.5089/9781451833850.002