DAKAR, May 3 (Reuters) - Senegal's economic growth is projected at 7.1% for 2024, revised down from 8.3%, the International Monetary Fund (IMF) said in a statement on Friday.
The revision reflects weaker economic activity in the first quarter of 2024 due to political uncertainty linked to a tense presidential election in March and delays in gas production to December 2024.
"High frequency indicators suggest that economic activity was subdued as businesses postponed investments and consumers cut back on spending," the Fund said after a mission to the West African nation to lay the ground for a second review under its current IMF-supported program.
Headline inflation declined to 3.3% year-on-year during the first quarter.
"Meeting the end-2024 fiscal deficit target of 3.9 percent of GDP will require ambitious measures to reduce tax exemptions and enhance spending efficiency," the IMF said.
The new government has reaffirmed its commitment to the IMF-supported program, which remains broadly on track for now, it added.
"They recognize that the program's core pillars align with their own strategic goals," it said.
Senegal's economy grew 4.6% in 2023, on the back of a good agriculture campaign and a strong tertiary sector, despite external pressures and tensions in the run-up to the presidential election.
Inflation also saw a faster-than-anticipated decline, dropping to 5.9%. (Reporting by Sofia Christensen; Editing by Emelia Sithole-Matarise)
