IMF outlook guarded optimistic

The latest IMF report for Senegal contains positive comments on the near term and some optimism for the medium term. Here is the heart of todays release on the early September IMF mission: “Despite the gloomy international context, GDP growth is expected to increase slightly to 4.3 percent in 2013, sustained primarily by major projects coming to fruition in the electricity and road sectors, the continued recovery of the agricultural sector, implementation of the heavy metals project (zircon) in Grande Côte, gold mining projects in Golouma and Massawa, and the startup of projects financed by the Millennium Challenge Account. Inflation is expected to remain contained at about 2 percent in 2013. The current account deficit should decline, but would remain high in light of imports associated with investments in the energy and mining sectors. The overall balance of payments is expected to post a slight deficit. “In the medium term, the key challenge for Senegal is to return to strong, sustainable, shared growth. The government has an important role to play in the process, for instance, through the development of essential infrastructure, reforms to improve the business climate, and appropriate social policies. Reconciling the objectives of meeting the country's development needs and maintaining a sustainable debt position calls for greater efficiency in public spending."