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.
6 Oct 2021
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Research by
Series
COVID-19 MACROECONOMIC POLICY RESPONSES IN AFRICA 08
Country
Senegal
SAIIA Programme
Economic Diplomacy
Tags
COVID-19, macroeconomic
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