IMF Concludes Visit to Senegal, Flags Fiscal Risks and Reform Progress

Talks focus on economy, debt vulnerabilities, and possible new IMF programme

An International Monetary Fund (IMF) staff mission has concluded its visit to Senegal after discussions with government officials on recent economic developments, fiscal pressures, and ongoing reform efforts.

The IMF team, led by Mercedes Vera Martin, IMF Mission Chief for Senegal, visited the country from June 15 to 19 to review macroeconomic conditions and assess policy priorities amid rising global uncertainty.

Economy shows resilience despite rising pressures

In its preliminary findings, the IMF noted that Senegal’s economy has remained resilient, with real GDP growth reaching 6.7% in 2025, supported largely by expansion in the hydrocarbon sector.

The current account deficit also narrowed significantly over the year, driven by increased oil exports and reduced imports.

However, the Fund cautioned that fiscal and debt vulnerabilities remain elevated, with continued risks linked to global oil price volatility, tighter financial conditions, and broader geopolitical tensions.

Fiscal deficit narrows, but risks remain high

Senegal’s overall fiscal deficit improved markedly, falling from 13.4% of GDP in 2024 to 6.4% in 2025, mainly due to spending rationalisation measures.

Despite this improvement, the IMF warned that public finance pressures persist, particularly due to subsidy costs and rising external risks.

The report highlighted that higher global oil prices—partly linked to the ongoing war in the Middle East—could further strain the country’s budget.

Reform progress and governance focus

The IMF welcomed Senegal’s continued engagement and reform commitments, particularly efforts to strengthen public financial management, fiscal governance, and transparency.

It also noted institutional reforms aimed at unifying debt management functions as a key corrective step following past misreporting issues.

The Fund stressed that further decisive action will be required to fully address these vulnerabilities.