Senegal Economy Profile 2008

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. 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 1995-2007. Annual inflation had been pushed down to the low 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, and 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 modernize 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.

GDP (purchasing power parity)

$20.61 billion (2007 est.)

GDP (official exchange rate)

$11.1 billion (2007)

GDP - real growth rate

4.8% (2007 est.)

GDP - per capita (PPP)

$1,700 (2007 est.)

GDP - composition by sector

agriculture: 13.1%
industry: 20.6%
services: 66.3% (2007 est.)

Population below poverty line

54% (2001 est.)

Household income or consumption by percentage share

lowest 10%: 2.7%
highest 10%: 33.4% (2001)

Inflation rate (consumer prices)

5.8% (2007)

Investment (gross fixed)

12.2% of GDP (2007 est.)

Labor force

4.85 million (2007 est.)

Labor force - by occupation

agriculture: 77.5%
industry and services: 22.5% (2007 est.)

Unemployment rate

48% (2007 est.)

Distribution of family income - Gini index

41.3 (2001)

Budget

revenues: $2.25 billion
expenditures: $2.987 billion (2007 est.)

Public debt

22.6% of GDP (2007)

Industries

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

Industrial production growth rate

2.7% (2007 est.)

Electricity - production

2.159 billion kWh (2006)

Electricity - consumption

1.859 billion kWh (2006)

Electricity - exports

0 kWh (2005)

Electricity - imports

0 kWh (2005)

Oil - production

0 bbl/day (2005 est.)

Oil - consumption

35,000 bbl/day (2005 est.)

Oil - imports

37,180 bbl/day (2004)

Oil - exports

3,889 bbl/day (2004)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

2 billion cu m (2006 est.)

Natural gas - consumption

2 billion cu m (2006 est.)

Natural gas - exports

NA cu m

Natural gas - imports

NA cu m

Natural gas - proved reserves

NA cu m

Current Account Balance

-$1.085 billion (2007 est.)

Agriculture - products

peanuts, millet, corn, sorghum, rice, cotton, tomatoes, green vegetables; cattle, poultry, pigs; fish

Exports

$1.725 billion f.o.b. (2007 est.)

Exports - commodities

fish, groundnuts (peanuts), petroleum products, phosphates, cotton

Exports - partners

Mali 19.2%, France 8.3%, India 5.8%, Gambia, The 5.3%, Spain 5.1%, Italy 4.9% (2006)

Imports

$3.673 billion f.o.b. (2007 est.)

Imports - commodities

food and beverages, capital goods, fuels

Imports - partners

France 25.1%, UK 5.2%, Thailand 4.8%, China 4.5%, Spain 4% (2006)

Reserves of foreign exchange and gold

$1.35 billion (31 December 2007 est.)

Debt - external

$2.004 billion (31 December 2007)

Market value of publicly traded shares

$NA

Economic aid - recipient

$477 million (2007 est.)

Currency (code)

Communaute Financiere Africaine franc (XOF); note - responsible authority is the Central Bank of the West African States

Exchange rates

Communaute Financiere Africaine francs (XOF) per US dollar - 481.83 (2007), 522.89 (2006), 527.47 (2005), 528.29 (2004), 581.2 (2003)
note: since 1 January 1999, the XOF franc has been pegged to the euro at a rate of 655.957 XOF francs per euro

Fiscal year

calendar year