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Senegal is facing worrying inflation, which has reached 9.7 percent in 2022, a record high in decades. The inflationary spiral is mostly felt as soaring food prices scaled high. Households are complaining that the essential and basic food items are beyond their reach
Senegal is facing worrying inflation, which has reached 9.7 percent in 2022, a record high in decades. The inflationary spiral is mostly felt as soaring food prices scaled high. Households are complaining that the essential and basic food items are beyond their reach.
The inflation rate in Senegal averaged 2.18 percent from 2006 until 2023, reaching an all-time high of 14.10 percent in November of 2022 and a record low of -4.70 percent in August of 2009.
Food Inflation in Senegal averaged 3.69 percent from 2010 until 2023, reaching an all-time high of 21.40 percent in November of 2022 and a record low of -4.65 percent in November of 2014. In 2022, Senegal saw an inflation average of 9.7 percent, the highest rate in several decades. country.
For 2023, the IMF suggested that inflation should decline to about 5 percent thanks to the consolidation of public finance. In the medium term, the IMF said that the prediction is optimistic in view of the start of oil and gas production and the implementation of structural reforms to overcome the main obstacles to private sector development under Phase 3 of the Emerging Senegal Plan (PSE). Senegal has experienced a more marked slowdown than expected in its Gross Domestic Product (GDP) and its growth.
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The IMF also flagged the high public debt of the country saying that the room for managing the economy with higher public debt has been exhausted because of the deficits recorded in the last three years. As a result, like several other countries of the West African Economic and Monetary Union, Senegal is also finding it increasingly difficult to raise funds on the financial markets. Senegal is also in talks to benefit from the Climate Change Resilience and Sustainability Facility, a new IMF program launched in 2021.
