Highlights

• Senegal experienced an average growth of 6.1 % over the 2014-2018 period as a result of the structural reforms undertaken by the government, particularly in the context of the implementation of the first phase of Senegal Emerging Plan 2014-2018. In 2019, the first year of implementation of the second phase of the PSE, Senegal’s growth is estimated at 5.3%. It would decrease to 2.8% in 2020 against an initial forecast of 6.0% due to the COVID-19 crisis.
• The second phase of the Senegal Emerging Plan (PSE) is planned to be implemented over the 2019-2023 period. The Plan aims in the long term to the emergence of Senegal, particularly through the structural transformation of the economy and growth. 
• Inflation over the whole 2014-2018 period remains low and is below the community standard of 3 %. The inflation rate reached 0.9% and is expected to be 2.4% in 2020. 
• The budget deficit of Senegal has gradually narrowed over the 2016-2018 period from 4.8 % of GDP in 2016 to 3.7 % of GDP in 2018 while remaining above the community standard of 3.0%. In 2018, the budget deficit related to GDP increased by 0.2 point at 3.9% and could reach 6.8% in 2020. Senegal should comply the community standard from 2021.
• The current account balance of the balance of payments showed a deficit of 8.5% of GDP in 2019, against a deficit of 9.5% in 2018 in line with the reduction in the trade balance deficit. The improvement in the current account balance should continue in 2020 with a projected level of 7.9% of GDP. This improvement in the current account balance is attributable to a more significant contraction in imports than in exports in 2020 related to the COVID-19 pandemic. This situation should help improve Senegal’s trade balance.
• Senegal has a stable political and social environment. The country has realized major infrastructure and many reforms aimed to increase the economic productivity and improving the economy’s competitiveness. These include the realization of infrastructure to support economic productivity and the implementation of the Business Environment and Competitiveness Reform Program (PREAC).  
• As a result of the reforms undertaken to improve business climate, Senegal has made a qualitative leap in the Doing Business ranking from 147th in 2017 to 140th place in 2018. In 2019, Senegal was ranked 141st out of 190 countries.