Senegal: Large fiscal and current account deficits

GDP growth improved in 2012 although the expansion in the primary sector was lacklustre. Membership of the CFA franc zone provides for low exchange rate and transfer risk.

Some of the structural impediments also feed through into competitive deficiencies in key export industries and Senegal's external accounts are generally weak.

Despite significant foreign debt relief, including writeoffs, principally through the HIPC initiative in 2006, external obligations and their repayment schedules are a significant redirection of limited financial resources away from more productive uses.