(Ecofin Agency) - At the end of the interviews conducted as part of the first review of the agreement under the Policy Coordination Instrument (PCI) concluded with Senegal, the International Monetary Fund (IMF) indicated that the country's GDP growth rate is now projected at 1.1% for the year 2020, compared to 5.3% in 2019.
These forecasts, which are based on the control of the evolution of the coronavirus pandemic, the implementation of measures to support the economy and a gradual recovery of activity during the second half of 2020 in the country, are below the IMF's initial projections. The institution previously saw the decline of the Senegalese economy at 3% of GDP this year.
IMF also revised downwards budget deficit to 6.1% of GDP from 5.6% initially. The Fund reports, however, that it has reached an agreement with the Senegalese authorities on economic and financial measures that could facilitate the approval of the first review of their three-year program under the Policy Coordination Instrument.
This three-year program was approved by the IMF Board on 10 January 2020. In line with the Emerging Senegal Plan (PSE), it aims to support the country's efforts to consolidate macroeconomic stability and foster sustained and inclusive growth.
IMF does not provide financing under the PCI but the completion of the program reviews ‘will demonstrate Senegal's determination to continue to pursue sound economic policies and structural reforms,” the Fund said.