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The rating agency Standard & Poor's believes that this revision from perspective to positive reflects an opinion that Senegal's real GDP growth will remain strong in 2018-2021 and that the government is determined on the one hand to reduce the budget deficit to around 3.0% of GDP next year, and on the other hand to reduce funding below the line, in line with the criteria defined by the West African Economic and Monetary Union ( UEMOA), according to a statement
S & P also estimated that the country's external performance should improve with the start of offshore production of the Sangomar and Rufisque blocks in 2022-2024, and the net energy deficit of Senegal, which currently stands at 5% of GDP, could then tend towards zero.
According to the agency, the note of Senegal is supported by a relatively predictable institutional framework in p its UEMOA membership, while recalling that real GDP growth has almost doubled since the launch in 2014 of the Senegal Emergent Plan (PSE), rising from around 3.5% on average over the period 2011-2014. at more than 7.0% last year
S & P also noted that low per capita income in the country, large external debt, and rising public debt are constraining the rating. Among the weaknesses, obstacles continue to hinder foreign investment, including deficiencies in property rights and the still high cost of electricity supply despite a gradual improvement in the situation in recent years.
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