The second review of Senegal’s economic performance has been completed under a program supported by the Policy Support Instrument (PSI) by the Executive Board of International Monetary Fund.
Senegal’s PSI was approved last June.
Mitsuhiro Furusawa, deputy managing director and acting chair, made a statement after the executive board discussion was complete. Furusawa stated that the PSI has bolstered a strong macroeconomic performance, with growth increasing by 2.2 percent, up to 6.5 percent in 2016 from 4.3 percent in 2015. With inflation remaining low, Furusawa believes that the fiscal deficit target of 4.2 percent of GDP in 2016 will directly support reaching the West African Economic and Monetary Union’s goal of 3 percent in 2018, a full year of the mandated 2019.
Furusawa went on to say that authorities are recognizing the fact that raising the growth rates 7 to 8 percent in the 20-year period that the Plan Senegal Emergent needs resolute action in order to decrease patronage and rent-seeking to open up economic space to small and medium enterprises as well as to foreign direct investment.