Country Brief

Since the depreciation of the CFA franc (1994), Senegal reached a new growth threshold. Between 1996 and 2006, the average yearly growth of the gross domestic product (GDP) amounted to 5% -- compared to an average 2.5% growth before the depreciation. And, while GDP growth is twice as much as the demographic growth (2.47% in 2006), Senegal is still affected by poverty: in a predominantly young country, with a majority of women, one out of two Senegalese is poor.

Macro-economic indicators experienced a consistent and steady growth with an inflation rate of 2%, budget deficit of 3% and foreign debt rate of 50%. Consumer consumption (9.1% in 2005) was a key factor, which was triggered by several wage increase and public sector recruitment (2003), the blossoming of the agricultural production (reinvigoration of the horticultural sector and of agro-food industries), the dynamic performances of the service and telecommunication sectors as well as by the increased pace of the large public project policy (23% in 2005).

Remarkable changes in Senegal during the last 3 years

• The preparation (2003-2005) and subsequent implementation (2006-2010) of the Poverty Reduction Strategy Papers (PRSP)

• Strong government support for private sector development

• Strong partnerships with development partners

Senegal has aligned its development strategies to the regional, continental and global agendas, and has developed a sound political, economic, legal and social framework that is conducive for private sector development.

General indicators