Senegal’s finance minister, Cheikh Diba, announced on Tuesday that the West African country has revised its growth forecast for 2026 upward to 3.2% from the previously estimated 2.5%. The economic ministry had initially predicted that growth would slow down to 2.5% this year, compared to 6.7% in 2025, due to a decline in hydrocarbon production.
The Senegalese government has been engaged in discussions with the International Monetary Fund to address the country’s debt issue since the problem was first revealed by the new leadership in 2024. According to Diba, the government will meet with the IMF team again by July 15. The budget deficit is expected to decrease to 4.9% of gross domestic product in 2027, 3.8% in 2028, and 3.0% in 2029, as stated by Diba.
The deficit was previously expected to return to the West African regional ceiling of 3% of GDP in 2027. Senegal has been facing economic challenges since the discovery of around $13 billion in misreported debt attributed to the previous administration. The country will maintain fiscal discipline, essential for regaining the confidence of lenders, Diba said.
For the period of 2027 to 2029, the economy’s total financing needs are estimated at 19.69 trillion CFA francs ($34.44 billion), or an annual average of 6.56 trillion CFA francs ($11.47 billion). Senegal plans to mobilize more resources through public-private partnerships, revenues from hydrocarbon production, and deals with Arab and Asian countries. It will advocate for flexible conditions and simplified disbursement procedures.
