The International Monetary Fund just released its most recent (November 4-18) report on Senegal. Its assessment of the overall economy is gloomy, reflecting the world's economic doldrums. According to the IMF news release on the assessment:
“The global financial crisis and domestic shocks are affecting Senegal’s economy. Growth is expected to slow to 1¼ percent in 2009 from an already depressed 2½ percent in 2008. Business activity has been weak, remittances have been under pressure, and tax revenues are lower than expected. In the second half of this year the economy has also been undercut by electricity shortages and urban flooding."
The report has hopes for a turnaround in 2010, with growth of 3.5 percent. But its most positive comments were reserved for the Senegal government's fiscal discipline of late:
"All quantitative assessment criteria were met and key structural benchmarks have been completed. The stock of the government’s unpaid bills within the regular expenditure chain has been normalized. The mission welcomed progress with reforms to improve public financial management."
In other words, the public sector is continuing to pay its bills despite tough times. Real improvements will await economic recovery. Preparing fertile ground now would help.
"Measures to improve the business climate could include reducing delays in transferring property rights, better contract enforcement, and the simplification of customs procedures."
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