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Senegal: IMF Staff Completes Review Mission to Senegal

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End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision.

Washington, DC: A staff team from the International Monetary Fund (IMF), led by Ms. Corinne Deléchat, conducted a virtual mission from November 5-16, 2020 and engaged in discussions as part of the second review of the IMF’s Policy Coordination Instrument (PCI) approved in January 2020. At the conclusion of this mission, Ms. Deléchat issued the following statement:

The IMF team reached staff-level agreement with the authorities on economic and financial policies that could support approval of the second review of their three-year program under the PCI. The IMF Executive Board could consider the second review in the first half of January 2021.

The pandemic’s economic impact was significant in the first half of 2020, but the recovery appears to be stronger than previously forecast, reflecting the lifting of lockdown measures, the steady decline in infections and hospitalizations since August and favorable prospects for the 2020-21 agricultural campaign. As a result, the economic contraction of 0.7 percent anticipated could be avoided. This growth momentum is expected to carry over to 2021, with economic activity projected to rebound at around 5 percent. The favorable outlook is however subject to significant uncertainty and will largely depend on the course of the pandemic globally and in Senegal.

Budget execution has been broadly satisfactory and is expected to result in a deficit of about 6 ½ percent of GDP in 2020. This is in line with the program’s objective adjusted for a shortfall in grants, due to the delay to 2021 of a budget support disbursement planned for 2020. The mission commended the authorities for the strong implementation of the Economic and Social Resilience Program (PRES), which was instrumental in cushioning the pandemic’s impact. The mission welcomed the authorities’ commitments regarding the accountability and transparency in COVID-19 related spending execution, notably relating to the continued publication of regular budget execution reports, the publication of the special report on the “Force COVID-19” fund by the monitoring committee, and the audit by the Audit Court.