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Senegal Economy


After its economy retracted by 2.1% in 1993 Senegal instigated a major economic reform program with the support of the international donor community. This reform began with a 50% devaluation of the country's currency (the CFA franc). Government price controls and subsidies were also dismantled. As a result, Senegal's inflation went down, investments went up, and the Gross domestic product rose approximately 5% a year between 1995 and 2001.

The main industries include food processing, mining, cement, artificial fertiliser, chemicals, textiles and refining imported petroleum. It also boasts one of the best developed tourist industries in Africa. Exports include fish, chemicals, cotton, fabrics, groundnuts, and calcium phosphate.

As a member of the West African Economic and Monetary Union (WAEMU), Senegal is working toward greater regional integration with a unified external tariff. Senegal is also a member of the Organisation for the Harmonisation of Business Law in Africa (OHADA). Dakar, as the former capital of French West Africa, is also home to banks and other institutions which serve all of Francophone West Africa, and is a hub for shipping and transport in the region.

Senegal realised full internet connectivity in 1996, creating a mini-boom in information technology-based services. Private activity now accounts for 82% of GDP. On the negative side, Senegal faces deep-seated urban problems of chronic high unemployment, socio-economic disparity, and juvenile delinquency.

Senegal is a major recipient of international development assistance. Donors include USAID, Japan, France and China. Over 3,000 Peace Corps Volunteers have served in Senegal since 1963. Senegal is a member of the WTO.


Economy - overview:
In January 1994, Senegal undertook a bold and ambitious economic reform program with the support of the international donor community. This reform began with a 50% devaluation of Senegal's currency, the CFA franc, which was linked at a fixed rate to the French franc, and now to the euro. Government price controls and subsidies have been steadily dismantled. After seeing its economy contract by 2.1% in 1993, Senegal made an important turnaround, thanks to the reform program, with real growth in GDP averaging over 5% annually during 1995-2008. Annual inflation had been pushed down to the single digits. As a member of the West African Economic and Monetary Union (WAEMU), Senegal is working toward greater regional integration with a unified external tariff and a more stable monetary policy. High unemployment, however, continues to prompt illegal migrants to flee Senegal in search of better job opportunities in Europe. Senegal was also beset by an energy crisis that caused widespread blackouts in 2006 and 2007. The phosphate industry has struggled for two years to secure capital. Reduced output has directly impacted GDP. In 2007, Senegal signed agreements for major new mining concessions for iron, zircon, and gold with foreign companies. Firms from Dubai have agreed to manage and modernise Dakar's maritime port and create a new special economic zone. Senegal still relies heavily upon outside donor assistance. Under the IMF's Highly Indebted Poor Countries (HIPC) debt relief program, Senegal has benefited from eradication of two-thirds of its bilateral, multilateral, and private-sector debt. In 2007, Senegal and the IMF agreed to a new, non-disbursing, Policy Support Initiative program. In September 2009, Senegal signed a Compact with the US Millennium Challenge Corporation, which will provide $540 million in infrastructure development, primarily in road construction along Senegal's northern and southern borders in conjunction with adjacent irrigation and agriculture projects.

GDP (purchasing power parity):
$22.62 billion (2009 est.)

GDP (official exchange rate):
$12.79 billion (2009 est.)

GDP - real growth rate:
1.8% (2009 est.)

GDP - per capita (PPP):
$1,900 (2009 est.)

GDP - composition by sector:
agriculture: 15%
industry: 21.4%
services: 63.6% (2009 est.)

Labour force:
5.39 million (2009 est.)

Labour force - by occupation:
agriculture: 77.5%
industry and services: 22.5% (2007 est.)

Unemployment rate:
48% (2007 est.)

Population below poverty line:
54% (2001 est.)

Household income or consumption by percentage share:
lowest 10%: 2.5%
highest 10%: 30.1% (2005)

Distribution of family income - Gini index:
41.3 (2001)

Investment (gross fixed):
25.5% of GDP (2009 est.)

revenues: $2.767 billion
expenditures: $3.445 billion (2009 est.)

Public debt:
29.6% of GDP (2009 est.)

Inflation rate (consumer prices):
-1% (2009 est.)

Central bank discount rate:
4.25% (31 December 2009)

Commercial bank prime lending rate:
NA% (31 December 2009 )

Stock of narrow money:
$3.002 billion (31 December 2009)

Stock of broad money:
$4.907 billion (31 December 2009 est.)

Stock of domestic credit:
$3.529 billion (31 December 2009)

Market value of publicly traded shares:

Agriculture - products:
peanuts, millet, corn, sorghum, rice, cotton, tomatoes, green vegetables; cattle, poultry, pigs; fish

agricultural and fish processing, phosphate mining, fertiliser production, petroleum refining; iron ore, zircon, and gold mining, construction materials, ship construction and repair

Industrial production growth rate:
1.5% (2009 est.)

Electricity - production:
1.88 billion kWh (2007 est.)

Electricity - consumption:
1.384 billion kWh (2007 est.)

Electricity - exports:
0 kWh (2008 est.)

Electricity - imports:
0 kWh (2008 est.)

Oil - production:
0 bbl/day (2008 est.)

Oil - consumption:
39,000 bbl/day (2009 est.)

Oil - exports:
5,653 bbl/day (2007 est.)

Oil - imports:
42,850 bbl/day (2007 est.)

Oil - proved reserves:
0 bbl (1 January 2010 est.)

Natural gas - production:
50 million cu m (2008 est.)

Natural gas - consumption:
50 million cu m (2008 est.)
Natural gas - exports:
0 cu m (2008 est.)

Natural gas - imports:
0 cu m (2008 est.)

Natural gas - proved reserves:
NA cu m

Current account balance:
-$1.356 billion (2009 est.)

$1.902 billion (2009 est.)

Exports - commodities:
fish, groundnuts (peanuts), petroleum products, phosphates, cotton

Exports - partners:
Mali 20.12%, India 9.84%, Gambia 5.58%, France 5.02%, Italy 4.23% (2009)

$4.549 billion (2009 est.)

Imports - commodities:
food and beverages, capital goods, fuels

Imports - partners:
France 19.58%, UK 9.64%, China 8.08%, Netherlands 5.64%, Thailand 4.75%, US 3.97% (2009)

Reserves of foreign exchange and gold:
$2.123 billion (31 December 2009 est.)

Debt - external:
$3.462 billion (31 December 2009 est.)

Exchange rates:
Communaute Financiere Africaine francs (XOF) per US dollar - 481.35 (2009), 447.81 (2008), 481.83 (2007), 522.89 (2006), 527.47 (2005)
note: since 1 January 1999, the West African CFA franc (XOF) has been pegged to the euro at a rate of 655.957 CFA francs per euro; West African CFA franc (XOF) coins and banknotes are not accepted in countries using Central African CFA francs (XAF), and vice versa, even though the two currencies trade at par





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