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The Economy of Senegal

Senegalese Economy

Senegal's map

Economy - overview: In January 1994, Senegal undertook a bold and ambitious economic reform program with the support of the international donor 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 over 5% annually during 1995-2008. Annual inflation had been pushed down to the single digits. As a member of the West African Economic and Monetary Union (WAEMU), Senegal is working toward greater regional integration with a unified external tariff and a more stable monetary policy. High unemployment, however, continues to prompt illegal migrants to flee Senegal in search of better job opportunities in Europe. Senegal was also beset by an energy crisis that caused widespread blackouts in 2006 and 2007. The phosphate industry has struggled for two years to secure capital, and reduced output has directly impacted GDP. In 2007, Senegal signed agreements for major new mining concessions for iron, zircon, and gold with foreign companies. Firms from Dubai have agreed to manage and modernize Dakar's maritime port, and create a new special economic zone. Senegal still relies heavily upon outside donor assistance. Under the IMF's Highly Indebted Poor Countries (HIPC) debt relief program, Senegal has benefited from eradication of two-thirds of its bilateral, multilateral, and private-sector debt. In 2007, Senegal and the IMF agreed to a new, non-disbursing, Policy Support Initiative program.

GDP:

GDP - real growth rate: 4.7% (2008 est.) 4.2% (2007 est.) 2% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 16% industry: 19.4% services: 64.6% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 2.7% highest 10%: 33.4% (2001)

Distribution of family income - Gini index: 41.3 (2001)

Inflation rate (consumer prices):

Labor force: 4.973 million (2008 est.)

Labor force - by occupation: agriculture: 77.5% industry and services: 22.5% (2007 est.)

Unemployment rate: 48% (2007 est.)

Budget: revenues: $3.141 billion expenditures: $3.799 billion (2008 est.)

Industries: agricultural and fish processing, phosphate mining, fertilizer production, petroleum refining; iron ore, zircon, and gold mining, construction materials, ship construction and repair

Industrial production growth rate: 5% (2008 est.)

Electricity - production: 2.28 billion kWh (2006 est.)

Electricity - production by source:

Electricity - consumption: 1.657 billion kWh (2006 est.)

Electricity - exports: 0 kWh (2007 est.)

Electricity - imports: 0 kWh (2007 est.)

Oil - production: 0 bbl/day (2005 est.)

Oil - consumption: 36,200 bbl/day (2006 est.)

Oil - exports: 4,298 bbl/day (2005)

Oil - imports: 40,450 bbl/day (2005)

Oil - proved reserves: 0 bbl (1 January 2006 est.)

Natural gas - production: 50 million cu m (2006 est.)

Natural gas - consumption: 50 million cu m (2006 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: NA cu m

Agriculture - products: peanuts, millet, corn, sorghum, rice, cotton, tomatoes, green vegetables; cattle, poultry, pigs; fish

Exports: $1.904 billion f.o.b. (2008 est.)

Exports - commodities: fish, groundnuts (peanuts), petroleum products, phosphates, cotton

Exports - partners: Mali 18.9%, France 9.1%, Italy 5.9%, India 5.7%, The Gambia 5.2% (2007)

Imports: $4.654 billion f.o.b. (2008 est.)

Imports - commodities: food and beverages, capital goods, fuels

Imports - partners: France 22.2%, Netherlands 10%, China 7.4%, UK 6.2%, Thailand 5.2%, Belgium 4.5% (2007)

Debt - external: $2.528 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: Communaute Financiere Africaine francs (XOF) per US dollar - 447.81 (2008 est.), 481.83 (2007), 522.89 (2006), 527.47 (2005), 528.29 (2004) note: since 1 January 1999, the West African CFA franc (XOF) has been pegged to the euro at a rate of 655.957 CFA francs per euro; West African CFA franc (XOF) coins and banknotes are not accepted in countries using Central African CFA francs (XAF), and vice versa, even though the two currencies trade at par

Fiscal year: