IMF announces weaker economic growth in Senegal
May 2, 2014 by nan
Mr Hervé Joly, Head of an IMF mission to Senegal, said this in a
report released at the end of seventh review of Senegal’s performance
under the Policy Support Initiative.
The News Agency of Nigeria reports that the team was in Senegal between April 16 and 30 during which it met with critical economic stakeholders in the country.
“Estimates suggest that GDP growth was weaker than forecast in 2013 with about 3.5 per cent compared to the expected four per cent.
“This is indicative of low levels of production in agriculture as well as difficulties in the industrial sector and in the extractive industries,” he said.
Joly further said that economic activity was particularly buoyant in the telecommunications and construction sectors.
He said inflation stood at 0.7 per cent on average in 2013 amidst softer agricultural commodity prices in the international market.
“The external current account deficit deteriorated to about 10 per cent of GDP, largely as a result of a significant decline in gold prices.
“Credits to the economy increased sharply while the money supply grew by eight per cent,” the IMF official said.
Joly said that a more favourable economic environment and improvement in the socio-political situation in the West African sub-region will enable a rebound of GDP growth.
“A strong rebound in agriculture, mining and industrial sectors in 2014 as well as stepped up public investment efforts will help to boost GDP growth to 4.9 per cent,” he said.
He said that Senegal met all quantitative assessment criteria and indicative targets for all PSI-supported programmes at the end of 2013.
The News Agency of Nigeria reports that the team was in Senegal between April 16 and 30 during which it met with critical economic stakeholders in the country.
“Estimates suggest that GDP growth was weaker than forecast in 2013 with about 3.5 per cent compared to the expected four per cent.
“This is indicative of low levels of production in agriculture as well as difficulties in the industrial sector and in the extractive industries,” he said.
Joly further said that economic activity was particularly buoyant in the telecommunications and construction sectors.
He said inflation stood at 0.7 per cent on average in 2013 amidst softer agricultural commodity prices in the international market.
“The external current account deficit deteriorated to about 10 per cent of GDP, largely as a result of a significant decline in gold prices.
“Credits to the economy increased sharply while the money supply grew by eight per cent,” the IMF official said.
Joly said that a more favourable economic environment and improvement in the socio-political situation in the West African sub-region will enable a rebound of GDP growth.
“A strong rebound in agriculture, mining and industrial sectors in 2014 as well as stepped up public investment efforts will help to boost GDP growth to 4.9 per cent,” he said.
He said that Senegal met all quantitative assessment criteria and indicative targets for all PSI-supported programmes at the end of 2013.
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