Standard & Poor’s maintains the sovereign rating of Senegal – Young Africa

 The US agency maintained the sovereign rating ‘B + / B’ ‘of Senegal with a stable outlook, in line with the rating in June 2015. This note – even in the highly speculative category – remains, however, limited by the weakness of per capita income and low margin of maneuver for monetary policy, the agency estimated.

The American financial agency Standard & amp <- Aside Article Normal or folder -> ; Poor’s has maintained the sovereign rating ‘B + / B’ ‘of Senegal with a stable outlook. A holding that the agency justifies a level of sustained investment and Senegal’s political stability. A note that the agency can not imagine goodbye to the fact the decline of sustained economic growth and a gradual improvement in external and fiscal indicators of the country over the next 12 months, a- she indicated in a rating was made public June 17

Economic outlook favorable

This envisages an average growth rate of 6.6 % over the 2016-2019 period, a rate twice to 3.5% from 2011-2014. The economic development plan, PSE, combined with the fall in prices per barrel, will wear in the medium term, growth through advances in the provision of electricity, public works and agricultural investments.

Already in 2015, says Standard & amp; Poor’s, the real GDP reached 6.5%, its highest for twelve years, mainly due to ongoing investments and a strong demand from the private sector. Other elements of this favorable situation recalled by S & amp; P to justify its rating, “the agricultural sector benefited from favorable weather conditions and improved productivity through public investment. The industrial sector has benefited from good performance in construction activity and chemical and mining industries, “writes the agency.

In addition, the recent gas discoveries off Senegal and Mauritania will stimulate growth and export earnings, but not during the period under review “because of the average implementation of these industries.”

GDP per capita remains low

despite all these advances, the rating agency notes that the GDP per capita estimated at $ 1 000 in 2016, is still low. Concerned high population growth which confines the real GDP growth rate per capita at 2.8% per year, S & amp; P considers “modest” in that income category

As expected. the government deficit stood at 4.8% of GDP in 2015 compared to the average of 5.8% between 2011 and 2014. a reduction that will continue, expects S & amp; P, which expects a gradual decline of the deficit , likely to reach between 2016 and 2019, an average of 3% of GDP. Similarly the current account deficit it expects to average 6.9% over the period 2016-2019, down from the 9.5% average between 2011 and 2014.

A ratio exports and imports will improve as the country will accelerate its sales abroad, especially gold, phosphate products, cement, and agricultural and fisheries products. This qu’entraînera improving productive capacity of the country (roads, railways, port and airport logistics), and the supply of electricity.

“If the government’s investment program and measures to increase growth (…) arrived to stimulate economic activities significantly more than we expect, we could consider raising the ratings Senegal. If, conversely, the government does not manage the implementation of reforms promoting growth (…), then we could consider the degradation of the sovereign rating of the country, “says S & amp; P

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