Senegal's Battle for Economic Stability Amid Audit Revelations

Senegal plans to reduce its budget deficit to 7% of GDP by 2025 after an audit highlighted a 10% deficit, affecting its $1.9 billion IMF programme. The new government aims to implement prudent debt policies and develop domestic diaspora bond markets while awaiting the Court of Auditors' final report.

Senegal is set to tackle a significant budget deficit projected at 7% of GDP by 2025, following an audit that revealed a previous 10% shortfall. This audit has put the country's $1.9 billion IMF programme on pause.

Under President Bassirou Diomaye Faye, the deficit was shown to be higher than previously reported at the end of 2023. New fiscal strategies include engaging traditional donors and developing domestic financing methods, while hoping to resume negotiations with the IMF by June 2025.

The government awaits a final audit report from the court of auditors due in December, which will likely adjust public debt figures upwards, influencing debt management until 2027. Amidst economic challenges, 2024 growth is expected at 8.8% due to new oil production.

(With inputs from agencies.)