CoMPRA

COVID-19 and its Impact on Senegal’s Macroeconomic Structure

CFA currency issued by the Central Bank of West African States, used in the eight West African countries which share the common currency. Image: Getty, Issouf Sanogo/AFP
CFA currency issued by the Central Bank of West African States, used in the eight West African countries which share the common currency. Image: Getty, Issouf Sanogo/AFP

The spread of COVID-19 in 2020 and 2021 has caused high mortality and morbidity rates across the globe.

Summary:

  • Senegal faced its biggest macroeconomic crisis with the spread of COVID-19. To maintain the same growth rate as in previous years, the government implemented major fiscal policies of more than $2 billion (West African CFA 1 000 billion) to trigger the overall economy.
  • The Central Bank of West African States has also introduced major monetary policies that, among other measures, kept inflation low, cash flowing and interest rates low.
  • To date (2021) the GDP growth rate forecast is more optimistic than prior to the adoption of the fiscal and monetary policies.
  • Overall, the dual system has had a positive impact on the economy and triggered a 1.3% real GDP growth compared to a -0.4% GDP growth forecast prior to the implementations of the policies.
The views expressed in this publication/article are those of the author/s and do not necessarily reflect the views of the South African Institute of International Affairs (SAIIA).

This content features on the G20 Resource Centre.

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6 Oct 2021

Research by

SAIIA Programme
Economic Resilience and Inclusion
Country
Senegal
Theme
Infrastructure Finance
Tags
COVID-19, Macroeconomic Policy, Monetary and Fiscal Responses

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