Overview

Senegal is one of Africa’s most stable countries. Since independence in 1960, there have been three peaceful political transitions. President Macky Sall, who has been in power since 2012, was re-elected to a second (five-year) term in February 2019. In July 2023, the president announced that he will not run in the next presidential election set to take place on February 25, 2024.

The COVID-19 pandemic and Ukraine’s invasion by Russia, have caused major terms-of-trade shocks, significantly affecting growth for 2022 and resulting in persistently high budget deficits and debt levels, with limited room for maneuver.

The pandemic has had as well a significant impact on the country’s economic outlook, affecting the service sector, notably tourism and transport, as well as exports. In response, Senegal has implemented various cost-containment measures, as well as an economic and social resilience program. However, the situation remains challenging due to limited budgetary margins and social safety nets, the vulnerability of the healthcare system and the size of the informal sector.

The main development challenge will be to boost economic activity to promote sustainable and inclusive growth while strengthening the resilience of vulnerable populations to shocks.

Source: World Bank 2024