Senegal's Economic Growth Surges on Oil Boom
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Senegal's economic growth surged to a record high in the third quarter, fueled by the commencement of oil exports, reports Bloomberg. The International Monetary Fund (IMF) forecasts the West African nation's economy to expand by 9.3% in 2024.
The National Agency of Statistics and Demography revealed that GDP jumped 8.9% quarter-on-quarter and 11.5% year-on-year in the three months ending September. This remarkable growth is expected to accelerate further as Senegal begins exporting gas from BP Plc's Greater Tortue Ahmeyim liquefied natural gas project, slated to commence "at the beginning of next year," according to Energy, Petroleum and Mines Ministry Secretary-General Cheikh Niane.
The economic boom presents a crucial opportunity for Senegal to address its public finances. The nation is projected to face a budget shortfall exceeding 11% of GDP in 2023. Prime Minister Ousmane Sonko outlined a plan to reduce the budget deficit to 3% of GDP by 2027, focusing on government expenditure cuts and tax revenue enhancement.
The oil and gas sector's contribution to Senegal's economic growth is substantial. Woodside Energy Group Ltd. initiated oil production at the Sangomar project offshore Senegal in June. The IMF's projected 9.3% growth for 2024 indicates the significant impact of these new industries.