Senegal's Budget Deficit Faces Upward Revision Amid Economic Challenges

Senegal has increased its 2025 budget deficit projection to 7.82% of GDP, up from 7.08%, due to reduced revenue forecasts and revised nominal GDP. The country's economic growth is now forecast at 8.0%, down from 8.8%. An audit revealed the budget deficit exceeded 10% from 2019 to 2023, causing IMF intervention.

Senegal's government has adjusted its 2025 budget deficit projection to 7.82% of GDP, as reported by a draft finance bill received by Reuters. This revision from an earlier forecast of 7.08% is due to decreased revenue predictions and a lower-than-expected nominal GDP.

This economic update attributes global economic challenges and domestic fiscal changes as the main reasons for the revised budget deficit. The West African nation, which has recently ventured into oil and gas production, has a new economic growth prediction of 8.0%, down from a previous estimate of 8.8% for 2025.

An audit conducted in September exposed that Senegal's budget deficit surpassed 10% between 2019 and 2023, more than double what was reported by the last administration. Following this revelation, the International Monetary Fund halted its support program for Senegal until transparency in deficit and debt figures is reinstated.

(With inputs from agencies.)