Senegal economy dropped big in 2008; better this year?

The growth of gross domestic product (GDP) of Senegal in 2008 registered a sharp drop, from 4.7 percent in 2007 to only 2.5 percent, according to the Senegal representative of the International Monetary Fund (IMF), Alex Segura. (Who recently had his Dakar apartment burlarized, by the way.)

"Between 1995 and 2005, Senegal has had a growth rate around 5 percent. In 2007 it was 4.7 percent," Segura told Radio France Internationale (RFI).

But "the effect of domestic debt on economic activity was very negative and led to a slowdown in activity in 2008 with a growth rate estimated at 2.5 percent, which is a sharp drop," he said. In 2006, the GDP of Senegal had already been a bad year with 2.4 percent.

In 2008, the secondary sector was severely affected, providers of the state have not been paid on time. Many companies were forced to reduce their activities," he added. According to Segura, the growth of non-agricultural GDP was only 1.5 percent in 2008.

For 2009, the IMF's estimated growth for Senegal is 4 percent.

Regarding the heavy domestic debt, "a third had been paid a week ago. The stock of 225 billion CFA francs (342 million) registered with the authorities, there were still around 150 billion CFA francs," Segura said.

"The Minister of Finance (Abdoulaye Diop) is working to find resources to pay the rest. In the coming weeks, if not all, much will be paid," said the IMF representative.

Good credit means paying your debts. The slow pay policy of Senegal's central government could continue to drag down the economy.