Economic trends
With a GDP per capita of USD 1,066, Senegal has, for a long time, experienced one of the highest growth rates of the UEMOA (West African Economic and Monetary Union). Structural reforms have created an important change in the economic environment of Senegal, notably thanks to the privatization of a number of public companies in the areas of agriculture and infrastructure. However, Senegal remains an LDC with almost 50% of the population living below the poverty threshold.
The informal sector represents 60% of GDP. The economy suffers from a faulty power grid, which slows down the growth of the country (4% in 2011). Investments are expected in this sector in 2012.
The country is poor in natural resources but it is one of the most industrialized in West Africa. Growth is driven in particular by the telecommunications sector. It should amount to nearly 5% in 2012, driven by the government's strong investment in public transport.
Senegal has many bilateral partnerships and benefits from assistance of several international agencies (World Bank, IMF, EU, ADB). The World Bank in particular has provided a loan of $ 3.6 billion to fund over 160 programs in many areas.
Main branches of industry
The primary sector employs 70% of the active population and contributes about 15% to the GDP. The Senegalese agriculture is characterized by being highly vulnerable to climatic hazards and locust threats. Senegal's main crops are peanuts, black-eyed peas, cassava, watermelons, millet, rice and corn. The country is relatively poor in natural resources. Fishing is also source of important revenues.
The secondary sector contributes 20% to the GDP. It is based on the production of fertilizers and phosphoric acid to be sent to India and peanut processing (oil and cattle meal) and seafood processing (despite a growing depletion in the resource). Today, the secondary sector is in crisis due to lack of energy management.
The tertiary sector contributes almost 65% to the GDP. It benefits from the excellence of the telecommunications infrastructure, which favors investments in teleservices and the Internet.
International trade
Foreign trade accounts for about 70% of Senegal's GDP.
Imports account for nearly half of the GDP. The country's main suppliers are France, the United Kingdom and China. Senegal mainly imports mineral fuels, oil, cereals, machinery and vehicles.
Goods and services exports account for 25% of the GDP. Senegal's main clients are Mali, India, France, Gambia and Guinea. The main export commodities are mineral fuels, oil, sea products, inorganic chemical products, salt, sulfur and vehicles.
For several years now, China has become an increasingly important partner of Senegal, as evidenced by the China-Africa summits. The country's trade balance improved in 2011 and this improvement should continue in 2012. However, the Senegalese foreign trade is characterized by a structural deficit of current account equivalent to several percentage points of GDP every year.
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Last updates: May 2012
