Hydrocarbon production is expected to reach 10% economic growth in 2023 (official)

Senegal has the hope of achieving double-digit economic growth. This growth should reach 10% in 2023 due to hydrocarbon production, the Ministry of Finance and Budget (Mfb) said.

In 2023, two major gas and oil projects, Grand Tortue Ahmeyim (Gta) and Sangomar, Dakaractu learned through press releases that the leap to operation.

In the document, Senegal has developed the “Yakar Terranga Gas Project to enable the production of more reliable and cheaper electricity, hydrocarbons” to support the “gas to electricity” strategy.

However, in addition to that, it should be noted that the rating agency Moody’s maintains a Senegalese rating of Ba3. Similarly, she said, “Senegal’s long-term rating will stabilize from negative (enforced from June 2020) and maintain Ba3’s rating,” emphasizing the ministerial division operated by Abdulai Dauda Dialo. He states: “This improvement was made on Friday, March 18, 2022, following the final mission to review Senegal’s sovereign rating. Uncertainty characterized by increased health and geopolitical risks at the global level. Given the certainty, this positive outlook change reflects the resilience of the Senegalese economy.

In addition, the increased revenue mobilization of the country should contribute to the gradual improvement of fiscal management, the statement said. A document reviewed by Dakarakutu’s editorial staff reflects changes in the outlook, and Moody’s says debt is more likely to start downwards in the absence of a new major shock. increase. Trends over the next few years. This trend should be supported, in particular, by the start of development of hydrocarbon production projects that significantly support economic growth and resilience in the face of extrinsic shocks arising from European geopolitical tensions. ”

Moody’s confidence in the ability of the Senegalese economy to absorb shocks has also increased, with media mentioning the resilience of the Covid-19 pandemic to economic shocks observed at 1.5% growth in 2020. Compared to the good agricultural season and effective fiscal policy support from the Economic and Social Resilience Program (Pres), which is equivalent to about 7% of GDP, or 1 trillion CFA francs, Ba3 rated peer countries 4.8% reduction between. During the pandemic, structural reforms continued to progress. Moody’s recalls that Senegal has the solid and lasting support of its international partners, providing long-term concessional lending and mitigating the risks associated with external debt.

The funding situation is not left behind. They also point out that they also have an advantage in regional markets that will benefit from Bceao’s support measures in response to improved market liquidity pandemics, “overall, this decision to raise the outlook is solid. The Senegalese fundamentals, which are in line with, have high macroeconomic and institutional stability and the international situation is uncertain, but growth is expected in the coming years. “