IMF lowers Senegal's economic growth forecast, citing external imbalances and undeclared debt

The International Monetary Fund has revised downwards its economic forecasts for Senegal, projecting a real GDP growth of 2.2% in 2026, down from 3.0% previously estimated. This figure remains below the sub-Saharan African average of 4.3%. A slight improvement to 2.3% is anticipated for 2027, indicating no significant short-term rebound. The IMF also expects the current account deficit to worsen to 6.2% of GDP in 2026, up from 5.4% initially forecast, and to remain high at 5.8% in 2027, reflecting ongoing reliance on external financing. Inflation is projected at 2.6% in 2026. Senegal's fiscal credibility has been impacted by the discovery of an undeclared debt, estimated at $13 billion, which led the IMF to suspend a $1.8 billion financing program in 2024. Senegalese authorities are currently in discussions with the IMF for a new program to restore confidence and stabilize public finances.