However, emerging macro fiscal challenges and rising global uncertainties undermine the outlook. The external position strengthened, with the current account deficit narrowing to 12% of GDP, driven by rising oil exports and moderated imports. hydrocarbon production is expected to boost economic growth in 2025. As hydrocarbon revenues gradually increase, Senegal has an opportunity to channel these resources into human capital development, infrastructure, and the energy transition.
Sustained progress will depend on efforts to improve productivity, enhance competitiveness, and create jobs, particularly for youth and underserved populations. Senegal’s recent fiscal transparency review efforts - covering 2019–2023 and revealing substantially higher deficits and public debt than previously disclosed - has materially worsened its macro-fiscal outlook, elevating debt sustainability concerns, pushing up borrowing costs, and contributing to credit rating downgrades.
