The International Monetary Fund has cut Senegal’s economic growth forecast for 2026, citing widening financial pressures and a rising debt burden.
The revised projection lowers real GDP growth to 2.2 per cent, down from 3.0 per cent in the IMF’s previous outlook.
The Washington-based lender also expects Senegal’s economy to expand by 2.3 per cent in 2027, signalling a muted recovery path.
The outlook places Senegal well below the Sub-Saharan African regional average of 4.3 per cent, highlighting its mounting economic strain.
The IMF also warned of a deeper external imbalance, raising its 2026 current account deficit forecast to 6.2 per cent of GDP.
That compares with an earlier estimate of 5.4 per cent, underscoring stronger reliance on foreign financing.
For 2027, the Fund expects the deficit to narrow slightly to 5.8 per cent, though pressures are set to persist.
A current account deficit reflects a country importing more than it exports, often signalling dependence on external capital inflows.
Inflation expectations for 2026 were also revised upward to 2.6 per cent from a previous estimate of 2.0 per cent.
The updated figures were published during the IMF and World Bank Spring Meetings in Washington.
Senegal has drawn heightened scrutiny after billions of dollars in undisclosed debt were uncovered, now estimated at around $13 billion.
That revelation prompted the IMF to suspend a $1.8 billion loan programme in 2024, straining relations with Dakar.
Talks are ongoing between Senegalese authorities and the IMF on a new financing arrangement.
The outlook casts a long economic shadow over the West African nation, as reforms and funding negotiations continue.