According to a report on Senegal’s economic situation released on June 21st, fiscal consolidation is a priority for Senegal given the tightening of financial conditions in regional and international markets. It could lead to a gradual reduction in the large share of outstanding debt in GDP after 2023. The risk of overall debt distress remains moderate, but it is important to have the leeway to deal with the indicated conjunctures. The report also points out that slower economic growth in 2022, driven by a decline in private investment and exports, as well as a contraction in the agricultural sector and industrial production are at the root of this slowdown.
