IMF expects Senegalese economy to grow strongly amid increased oil production
Date
6/24/2024 3:37:19 AM
(MENAFN) The International Monetary Fund (IMF) has projected that Senegal's Economy will experience substantial growth, with an expected expansion of 10.1 percent in 2025, a notable increase from this year's growth rate of 7.1 percent. According to the IMF's statement, Senegal's economic performance has significantly improved, bolstered by the peaceful resolution of the presidential elections held last March. This political stability is anticipated to contribute to a decline in the inflation rate, which is expected to stay within the target range set by the Central bank of West African States by the end of 2025.
Additionally, the IMF foresees a reduction in the high current account deficit during the 2024-2025 period. This improvement is attributed to the commencement of oil production and the fiscal consolidation efforts undertaken by the Senegalese government. Senegal has recently joined the ranks of oil-producing nations, following the initiation of production in the offshore Sangomar field. This field boasts a production capacity of 100,000 barrels per day and also contains significant natural gas reserves.
Economic analysts predict that the revenue generated from oil production in the Sangomar field could reach as much as USD60 billion over the next 25 years. This influx of revenue is expected to play a crucial role in further bolstering Senegal's economic prospects, supporting continued growth and development.
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