IMF predicts lower growth, bigger current account deficit for debt laden Senegal

LONDON, April 14 (Reuters) - The International Monetary Fund on Tuesday slashed Senegal's economic growth forecast for this year and said it expected a larger current account deficit than previously expected. Real GDP growth for 2026 in the West African nation that is struggling under a bulging debt burden was revised to 2.2% from 3.0% in the Fund's October forecast, according to the latest World Economic Outlook report published in October, well below the Sub-Saharan African regional average of 4.3%.

For 2027, the Fund predicted Senegal's economy would grow by 2.3%.

The Washington-based lender also updated its projections for the country's current account balance in the report published during the IMF World Bank Spring meetings.

Senegal's current account deficit was expected to come in at 6.2% of GDP in 2026 compared to predictions for the deficit to reach 5.4% made in October. For 2027, the Fund predicted the current account deficit to narrow to 5.8%. A current account deficit occurs when a country imports more than it exports, and reflects heavy reliance on foreign capital to fund consumption and investment.

Senegal inflation predictions for 2026 were lifted to 2.6% from 2.0% previously.

Senegal is in focus at the Spring meetings after the discovery of billions in undisclosed debt, now estimated at $13 billion, prompted the IMF to halt ?a $1.8 billion loan programme in 2024. The country has been in talks on a new financing programme with the Fund for some time. (Reporting by Karin Strohecker; Editing by Chizu Nomiyama )