Senegal's Economic Dawn: GDP Recalculation and Debt Strategy

Senegal updates its GDP base year to 2021, enhancing the GDP by 13.5% and improving debt metrics. This move aims to present a realistic economic picture amidst debt concerns, though S&P has downgraded the country's credit rating due to high debt levels.

In a bid to present a more accurate economic perspective, Senegal has recalibrated its GDP, updating its base year to 2021. This adjustment has propelled the GDP upward by 13.5%, reflecting the advent of new industries and economic shifts.

Despite the economic boost, concerns linger as S&P Global recently reduced Senegal's credit rating to CCC+, highlighting apprehensions over the country's escalating debt, which soared to nearly 120% by the end of 2024.

While the rebasing has improved Senegal's debt-to-GDP ratios, the International Monetary Fund has withheld a $1.8 billion program due to unreported debts linked to former governance, casting a shadow over the current government's strategies.

(With inputs from agencies.)