LONDON, April 14 (Reuters) – The International Monetary Fund on Tuesday slashed Senegal’s economic growth forecast for this year and said it \u200bexpected a larger current account deficit than previously \u200cexpected.<\/p>\n
Real GDP growth for 2026 in the West African nation that is struggling under a bulging debt burden was revised to 2.2% \u200bfrom 3.0% in the Fund’s October forecast, according \u200bto the latest World Economic Outlook report published in \u2060October, well below the Sub-Saharan African regional average of \u200b4.3%.<\/p>\n
Sign up here.<\/a><\/p>\n For 2027, the Fund predicted Senegal’s economy would grow by \u200b2.3%.<\/p>\n The Washington-based lender also updated its projections for the country’s current account balance in the report published during the IMF World Bank Spring \u200bmeetings.<\/p>\n Senegal’s current account deficit was expected to come in \u200bat 6.2% of GDP in 2026 compared to predictions for the deficit \u200cto \u2060reach 5.4% made in October. For 2027, the Fund predicted the current account deficit to narrow to 5.8%.<\/p>\n A current account deficit occurs when a country imports more than it \u200bexports, and \u200breflects heavy reliance \u2060on foreign capital to fund consumption and investment.<\/p>\n Senegal inflation predictions for 2026 were lifted \u200bto 2.6% from 2.0% previously.<\/p>\n Senegal is in focus \u200bat \u2060the Spring meetings after the discovery of billions in undisclosed debt, now estimated at $13 billion, prompted the IMF to halt \u2060a $1.8 \u200bbillion loan programme in 2024. The \u200bcountry has been in talks on a new financing programme with the Fund \u200bfor some time.<\/p>\n Reporting by Karin Strohecker; Editing by Chizu Nomiyama <\/p>\n Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n