As the second-largest economy in the WAEMU zone by GDP, Senegal stands as a beacon of democratic governance and economic emergence in sub-Saharan Africa. Through the Emerging Senegal Plan (PSE), the government has fostered sustained economic growth averaging 6.2% over 2015–2019. Despite COVID-19’s impact, Senegal’s economy proved resilient, recording 1.3% growth in 2020 after 4.6% in 2019. Growth rebounded sharply to 6.5% in 2021—a 5.2 percentage point jump—and is projected to consolidate at 4.2% in 2022, reflecting recovery in tourism, fisheries, and services.
Senegal’s economy exhibits notable structural diversification. While the tertiary sector remains predominant, its contribution to GDP has gradually declined over recent years. The services sector’s share fell from 62.2% in 2016 to 60.6% in 2020 and is projected at 60.0% in 2021 and 60.2% in 2022. This relative decline signals growing contributions from primary and secondary sectors—agriculture, fishing, and light manufacturing—supporting broader economic diversification.
Over 2017–2021, Senegal maintained moderate inflation below the WAEMU convergence ceiling of 3.0%. Inflation reached 2.2% in 2021, down 0.3 percentage points from 2020. However, 2022 projects a dramatic inflationary shock, with inflation estimated at 9.7%—a 7.5 percentage point jump above the convergence criterion—driven by deteriorating global conditions, commodity price inflation, and currency depreciation pressures from external imbalances.
Senegal’s current account position has deteriorated substantially since 2019. The current account deficit widened from 8.1% of GDP in 2019 to 10.9% in 2020, further deteriorating to 12.1% in 2021, and is projected to worsen to 15.3% of GDP in 2022. This severe external imbalance reflects elevated import demand for capital goods (PSE infrastructure projects), energy imports, and weak merchandise export growth—signaling external vulnerabilities requiring policy attention.
After continuous deterioration from 2018 to 2020, Senegal’s fiscal deficit stabilized in 2021. The budget deficit-to-GDP ratio widened from 3.7% in 2018 to 6.4% in 2020, settling at 6.3% in 2021. This elevated deficit reflects sustained public investment under the PSE framework combined with COVID-19-related expenditures. The deficit is projected to stabilize at 6.1% of GDP in 2022—substantially above the WAEMU convergence criterion of 3.0%—requiring gradual consolidation.
According to IMF estimates, Senegal’s public debt-to-GDP ratio has increased 12.2 percentage points over five years, rising from 61.1% in 2017 to 73.3% in 2021, driven by persistent budget deficits. The debt ratio is projected to increase further to 76.6% in 2022—approaching and potentially exceeding the WAEMU convergence ceiling of 70%—signaling elevated debt sustainability risks and constraining future fiscal flexibility.
To position Senegal on a path of sustained, inclusive, and job-creating economic growth while preserving environmental and natural resources, the government adopted the Emerging Senegal Plan (PSE) in 2014. The PSE’s decennial strategy (2014–2023) advances the vision of an emerging Senegal by 2035 and is organized around three strategic pillars:
