IMF releases review of Senegal's economy under Policy Support Instrument

The first review by the executive board of the International Monetary Fund (IMF) of Senegal's economic performance has been completed, and it has been determined that a Policy Support Instrument (PSI) approved by the IMF in June will move forward, the IMF said on Tuesday.

PSIs are a way for countries to get guidance from the IMF without accepting any financial help. PSIs are monitored in much the same way financial assistance plans are, with goals set and reviews conducted by the IMF's executive board.

In its report, the IMF said Senegal's future looked positive from an economic standpoint, as the inflation rate was low and not expected to go above 2 percent. Growth of 5.1 percent is expected by the end of the year and 5.9 percent by the end of 2016.

Most of the benchmarks set for June were achieved, but expected tax revenues fell short. This was attributed to lower-than-expected consumer activity and higher-than-expected tax spending.

Board members lauded Senegal's government officials for keeping public expenditures low.

As Senegal moves into 2016, the board suggested that officials continue looking for avenues to raise revenue and making public investments and public consumption more efficient. The board also said officials should work at revamping the nation's energy sector.

The board also urged the creation of programs to launch small- and medium-size (SME) enterprises and to improve the nation's overall business climate to keep in line with Achieving the Plan Senegal Emergent (PSE) goals and to further boost the nation's economy.