Economy
Economy - overview: In 1994 Senegal embarked on its most concerted structural adjustment effort yet to exploit the 50% devaluation of the currencies of the 14 Francophone African nations which took place on 12 January of that year. After years of foot-dragging, the government passed a liberalized labor code which should lower the cost of labor and improve the manufacturing sector's competitiveness. Inroads also have been made in closing tax loopholes, eliminating monopoly power in several sectors, and privatizing state-owned firms. At the same time, the government is holding the line on current fiscal expenditure under the watchful eyes of international organizations on which it depends for substantial support. The IMF, in mid-1995, announced that the government met most economic targets as called for in its Enhanced Structural Adjustment Facility agreement and released the second $50 million tranche. The country's narrow tax and resource base, environmental degradation, and untamed growth of the population will continue to hold back improvement in living standards over the medium term. According to the draft budget, GDP will again rise by 5% in 1997.
GDP: purchasing power parity - $15.6 billion (1996 est.)
GDP - real growth rate: 5% (1996 est.)
GDP - per capita: purchasing power parity - $1,700 (1996 est.)
GDP - composition by sector: agriculture : 21% industry: 19% services: 60% (1995 est.)
Inflation rate - consumer price index: 7.8% (1995)
Labor force: total: 2.509 million (77% are engaged in subsistence farming; 175,000 wage earners) by occupation: private sector 40%, government and parapublic 60%
Unemployment rate: NA%
Budget: revenues: $876 million expenditures: NA, including capital expenditures of $NA