According to new IMF projections, Senegal's economic growth is expected to decline to 1.1% of GDP in 2020 as a result of covid-19, compared to a decline to 3% initially forecast. The budget deficit is also expected to increase to 6.1% of GDP.

As a result of the discussions conducted in the framework of the first review of the agreement under the Economic Policy Coordination Instrument (ECI) with Senegal, the Unnational Monetary Fund (IMF)  indicated that the country's GDP growth rate is now projected at 1.1% for the year 2020 under the effect of covid-19, compared to 5.3% in 2019.

These forecasts, which are based on controlling the evolution of the pandemic, the implementation of measures to support the economy and a gradual recovery of activity in the second half of 2020 in the country, fall short of the IMF's initial projections. The institution had established the decline of the Senegalese economy to 3% of GDP this year.

At the same time, the budget deficit forecast has deteriorated slightly to 6.1% of GDP in 2020 under the effect of covid-19, against 5.6% forecast by the initial projections. However, the Fund reports that it has reached an agreement with the Senegalese authorities "on economic and financial measures that could facilitate the approval of the first review of their three-year programme under the Instrument for economic policy coordination (ICPE)".

Report that the three-year arrangement for Senegal under the ICPE was approved on January 10, 2020 by the IMF Executive Board. Aligned with the Emerging Senegal Plan (PSE), it aims to support the country's efforts to consolidate macroeconomic stability and promote sustained and inclusive growth.

The IMF does not provide any financing under the ICPE. However, the completion of the program reviews "will demonstrate Senegal's determination to continue to pursue sound economic policies and structural reforms."