Socio-Economic Environment-IMF Alerts: Ukraine Crisis, Social Demands, Regional Issues, Concerns-Lequotidien

Economic growth in 2021 exceeded expectations. However, the outlook is clouded by the possible impact of the war in Ukraine on economic activity, according to the International Monetary Fund, which advises the government to maintain fiscal discipline to maintain debt sustainability.

Crystalina Georgieva, DgIMF.

By Khady SONKO – In the face of rising energy and food prices and rising social demand, the International Monetary Fund (IMF) is a course of reform programs to maintain debt sustainability and strengthen economic resilience. Advise the government to maintain fiscal discipline in order to continue. ..
These recommendations were made following a hybrid mission by the IMF staff team led by Edward Gemeyer from March 9-15, 2022. The visit provided an opportunity to assess recent economic development. d Evaluate the economic impact of war. In Ukraine, sanctions will be taken against Mali to see the progress of reforms supported by economic policy coordinating measures, standby agreements and standby credit facilities.
“The Senegalese economy returned to its pre-pandemic growth trajectory in 2021, thanks to the power of the industrial production and services sector. Real GDP growth in 2021 is estimated to be 6.1%, about 1 more than expected. It’s a percentage point higher, “Gemayel said after the visit.
According to economist analysis, average inflation was kept at 2.2%, despite food prices rising 2.9%. “Despite lower-than-expected tax revenues, budget execution was generally in line with the target, with an overall budget deficit of 6.3% of GDP,” says Edward Gemeyer.
But he points out that the war in Ukraine has clouded the macroeconomic outlook. In fact, rising global food and energy prices for the July 2022 parliamentary elections are in addition to current economic policy challenges such as the aftermath of a pandemic, regional unrest and rising social demand. To do. Economic growth will probably lead to worsening inflationary pressures and a significant increase in public spending, “the IMF warns.
“The sustained increase in public debt over the last decade has significantly reduced Senegal’s financial space,” said the Bretton Woods agency, improving revenue mobilization and subsidizing due to lack of financial resources. It advises the government to rationalize and target more appropriately. Re-prioritize spending to avoid large fiscal gaps and maintain debt sustainability.
For Edward Gemeier, strengthening the resilience of the economy will depend on the pursuit of important structural reforms, especially those aimed at accelerating the implementation of medium-term revenue mobilization strategies. It also operates a new budget framework to control the use of hydrocarbon income, develops a roadmap for phased out energy subsidies, and improves current mechanisms to protect the most disadvantaged. It also includes doing. In addition to this, there are revisions to the legal framework for public procurement to increase the frequency of open bidding.
Discussions on the following program reviews supported by economic policy coordinating instruments, standby arrangements and standby credit facilities are scheduled for the end of April 2022.
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