In July 2024, Senegal experienced its lowest inflation rate in five years, reaching just 0.7%.
This decline was primarily driven by decreases in food and housing costs. Specifically:
- The prices for food products and non-alcoholic beverages fell by 2%, while
- Housing expenses, including water, electricity, gas, and other fuels, decreased by 0.8%
- International cereal prices dropped by 3.3%, thanks to increased agricultural output in the Northern Hemisphere, which further contributed to the easing of inflation in Senegal
Senegal’s achievement of the lowest inflation rate in five years is a noteworthy milestone. However, the economy still faces challenges due to sectoral disparities.
Price increases in services and goods such as restaurants, hotels, and household items indicate uneven economic progress. Additionally, there is a notable divergence in price trends between local and imported products – local prices fell by 2.8%, while imported goods rose by 4.2%.
Despite the positive overall economic outlook, attention is needed to address these imbalances and ensure sustained economic stability.
Recent developments
According to the World Bank, Senegal’s economy increased in 2023, driven by the resilience of the primary sector:
- After reaching a record high of 14% in late 2022, inflation declined to 5.9%.
- Senegal has coped relatively well in the context of multiple shocks, with the poverty incidence remaining relatively unchanged at 37.5% in 2021/22 from 37.8% in 2018/19 despite the Pandemic
- Poor Senegalese are still concentrated in rural areas with a relatively high concentration in the groundnut basin.
- Senegal’s tax revenue growth and buoyancy steadily improved over the past decade, surpassing its peers, but revenues remain below their potential.
Facts about Senegal
- Over 60% of the population is under the age of 25
- 35% of young Senegalese are not employed or in education or training as of 2019 statistics
- 1/3 of the population of 17 million live in poverty
- More than 39,900 people, mostly from Senegal and the Gambia, migrated from West Africa to Europe – more than double the number in 2023 from 2022
- Unemployment and inflation were among the top concerns in Senegalese 2024 elections
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