Senegal: Selected Issues

January 28, 2019

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Format: Chicago

Senegal: Selected Issues, (USA: International Monetary Fund, 2019) accessed November 21, 2024

Summary

This Selected Issues paper estimates the macroeconomic impact of these discoveries and discusses potential fiscal frameworks for managing related revenues. Pre-production investment (2019–2021) will lead to an increase in the current account deficit; however, this will be followed by a boost to exports as hydrocarbon production comes online (2022 onward). Discoveries are important but will not lead to a major transformation of the economy, with hydrocarbons expected to make up not more than 5 percent of GDP. Fiscal revenues would average about 1.5 percent of GDP over a 25-year period and about 3 percent of GDP when production peaks. Given the relatively small gains in revenue, IMF staff recommends a fiscal framework that allows for an initial drawdown of government resources to finance large up-front investment needs, followed by an appropriate target level of the non-resource primary balance which is to serve as a medium-term fiscal anchor. Issues related to managing the volatility of resource revenues are also discussed.

Subject: Commodities, Education, Gender, Gender inequality, Oil, Revenue administration, Women

Keywords: Cash transfer program, CR, Expenditure scheme, GDP, Gender inequality, Infrastructure investment, Investment efficiency, ISCR, Oil, Revenue, Senegal, Sub-Saharan Africa, Wage, Wage gap, Women

Publication Details

Pages:

46
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2019/028
Stock No:

1SENEA2019002
ISBN:

9781484396292
ISSN:

1934-7685

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