Economics

[Olùkọ́ Ọbádélé]

Economics


In January 1994, Senegal undertook a bold and ambitious economic reform program with the support of the international community. This reform began with a 50% devaluation of Senegal's currency, the CFA franc, which was linked at a fixed rate to the French franc. Government price controls and subsidies have been steadily dismantled. After seeing its economy contract by 2.1% in 1993, Senegal made an important turnaround, thanks to the reform program, with real growth in GDP averaging 5% annually during 1995-2002. Annual inflation had been pushed down to less than 1%, but rose to an estimated 3.3% in 2001 and 3.0% in 2002. Investment rose steadily from 13.8% of GDP in 1993 to 16.5% in 1997. As a member of the West African Economic and Monetary Union (WAEMU), Senegal is working toward greater regional integration with a unified external tariff. Senegal also realized full Internet connectivity in 1996, creating a mini-boom in information technology-based services. Private activity now accounts for 82% of GDP. In 2003, GDP will probably again grow at about 5%. On the negative side, Senegal faces deep-seated urban problems of chronic unemployment, trade union militancy, juvenile delinquency, and drug addiction.

Statistics

GDP per capita:

purchasing power parity - $1,500 (2002 est.)

Labor Force by occupation:

Agriculture 70%

Unemployment rate:

48% (urban youth 40%) (2001 est.)

Budget:

* revenues: $1.373 billion,
* expenditures: $1.373 billion, including capital expenditures of $357 million (2002 est.)

Industries:

* agriculture and fish processing
* phosphate mining
* fertilizer production
* petroleum refining
* construction materials

Export commodities:

* fish
* groundnuts (peanuts)
* petroleum products
* phosphates
* cotton

Debt - external:

$3.1 billion (2002 est.)

Economic aid recipient:

$362.6 million (2002 est.)