Economic Overview

After registering a decade of strong growth, the Senegalese economy was impacted by the Covid-19 pandemic, but was amongst the minority of economies that managed to avoid recession. However, during 2023, domestic socio-political unrest alongside political and security tensions in neighboring areas led to shifts in consumption and investment patterns, impacting sectors such as manufacturing (textiles, agri-food), agriculture (fertilizer and transport prices), and retail and hospitality. Consequently, economic growth was constrained (+4.1%, still below its pre-pandemic level, as per the IMF). In 2024, GDP growth is poised for a significant leap forward, propelled by hydrocarbons. The nation is banking on the initiation of two offshore fields, one for gas and the other for oil, to stimulate production, exports, investment, and tax revenues. The IMF forecasts growth at 8.8% this year and 10.2% in 2025.

Concerning public finances, the authorities remain steadfast in their commitment to achieving fiscal consolidation objectives. In 2023, they anticipated that enhanced revenue collection and improved spending control would decrease the fiscal deficit to 4.9% of GDP. Looking forward to 2024, reaching a fiscal deficit of 3.9% of GDP hinges on implementing measures to streamline tax expenditures and reduce energy subsidies to 1% of GDP. This year, authorities are accumulating liquidity buffers to ensure debt service payments during January-April 2024. Debt is projected to peak in 2023 (81% of GDP) and gradually decline as a percentage of GDP over the medium term, reflecting sustained fiscal consolidation and economic growth (decreasing to 67.6% by 2025 – IMF). Inflation receded to 6.1% in 2023 (down from 9.7% one year earlier) and is not expected to return to the WAEMU target of 3% before 2025 (IMF). After focusing on the response to external shocks, the authorities are now focused on implementing the revised Emerging Senegal Plan (PSE). The objective is to promote strong and inclusive private sector-led growth through structural transformation and diversification, with a new emphasis on accelerating the domestic production of critical supplies through sectoral policies (IMF). Increasing revenue mobilization, rebuilding fiscal buffers, putting public debt on a downward path, improving the business environment, enhancing the social safety net, broadening access to quality education, addressing youth unemployment, and tackling financial system weaknesses are the key challenges identified by the IMF.

According to the World Bank, if PSE reforms continue, the poor layer of the Senegalese population would progressively be able to access high-growth or value-added sectors, such as horticulture or agricultural processing. In 2022, the unemployment rate of the country was at 3% (World Bank, ILO estimate). In Senegal, several statistical studies conducted by the ANSD indicate that nearly 97% of economic units operate informally, with 96.4% of the active population engaged in the informal sector, encompassing both urban and rural areas. Overall, poverty (using the low middle-income poverty line) remained stable around 36.3% in 2022, while the country’s GDP per capita (PPP) was estimated at USD 4,209 (World Bank).

Foreign Trade

Senegal is an open economy where foreign trade accounts for 80% of its GDP (World Bank's latest available data). According to Comtrade, in 2022, the country’s main exports were petroleum oils (17.8%), gold (16.3%), diphosphorus pentoxide and phosphoric acid (13.2%), frozen fish (excl. fish fillets, 4.8%), and molluscs (3.8%). Meanwhile, main imports included petroleum oils (27.9%), rice (4.6%), wheat and meslin (3.1%), and light-vessels (3.1%).

The country's main export destinations in 2022 were Mali (19.9%), India (15.2%), Switzerland (11.6%), China (4.0%), and Australia (3.9%); whereas imports came chiefly from China (10.0%), France (9.2%), India (7.5%), Belgium (6.3%), and Spain (6.1% - data Comtrade). Senegal is a member of the Economic Community of West African States, and the country has trade agreements with several countries, including the EU, the United States, Switzerland, South Korea, Japan, and Australia. Given its growing influence in the African continent, China has become an increasingly important partner of Senegal. The country’s trade policies are designed to help reduce the trade deficit, ensure regular supplies to the domestic market, promote local value chains, strengthen the regional integration process and access to international markets and promote competition. Under the Emerging Senegal Plan, the government seeks to deepen regional integration by further developing the infrastructure network; eliminating barriers to the free movement of persons, goods, and services; and developing intra-community trade.

Senegalese foreign trade is characterized by a structural current account deficit, which historically represents more than 10% of GDP. However, offshore oil production should help narrow the deficit in the medium term. In 2022, imports of goods increased to USD 10 billion (+11.3% y-o-y) while exports of goods stood at USD 5.4 billion (+4% y-o-y – WTO). In the same year, the country imported services for the total value of USD 3.5 billion while its services exports amounted to USD 1.1 billion. The overall trade balance was estimated to be in deficit by 26% of GDP by the World Bank (from 19.9% in 2021).

COVID-19 Country Response

Travel restrictions

Regularly updated travel information for all countries with regards to Covid-19 related entry regulations, flight bans, test and vaccines requirements is available on TravelDoc Infopage.
To find information about the current travel regulations, including health requirements, it is also advised to consult Travel Regulations Map provided and updated on a daily basis by IATA.

Import & export restrictions

A general overview of trade restrictions which were adopted by different countries during the COVID-19 pandemic is available on the International Trade Centre's COVID-19 Temporary Trade Measures webpage.

Economic recovery plan

For the general overview of the key economic policy responses to the COVID-19 pandemic (fiscal, monetary and macroeconomic) undertaken by the government of Senegal please consult the country's dedicated section in the IMF’s Policy Tracker platform.

Support plan for businesses

For an evaluation of impact of the Covid pandemic on SMEs and an inventory of country responses to foster SME resilience, refer to the OECD's SME Covid-19 Policy Responses document.
You can also consult the World Bank's Map of SME-Support Measures in Response to COVID-19.