Senegal posted in 2017 its fastest GDP growth rate since 1999 at +7%. For the third consecutive year, growth hovered around 6.5-7%. This growth cycle coincides with the Emerging Senegal Plan, launched in 2014 and designed to prioritize the needs associated with urbanization. It consists of 5-year plans with a final target in 2035. As urbanization is the overarching goal, the construction sector was among the key winners (+11.2% growth in 2017). Health and education, the key priority of the current 5-year plan (10% of GDP) also grew by +9.7%. Overall, this growth is quite sustainable. Domestic credit growth was estimated at +9.5% in 2017 by the IMF, about the nominal growth rate of the economy. Moreover, inflation pressures should stay muted (we expect +1.5% for 2018), and the fiscal deficit is gradually diminishing (-3.5% of GDP in 2018). Investment and the reform momentum should hold the line in 2018. As a result, GDP growth is expected to accelerate further, to +7.2%.
