Oil Production Spurs Record Quarterly Economic Growth in Senegal
Senegal’s economic growth rate surged to a record in the third quarter as the West African nation began exporting oil, with the International Monetary Fund predicting a 9.3% expansion next year.
Gross domestic product jumped 8.9% in the three months through September from the previous quarter, the National Agency of Statistics and Demography said. The economy expanded 11.5% in the period from the previous year.
Economic growth is poised to accelerate further as Senegal begins exporting gas from BP Plc’s Greater Tortue Ahmeyim liquefied natural gas project. That’s expected at the “beginning of next year,” according to Energy, Petroleum and Mines Ministry Secretary-General Cheikh Niane.
The economic expansion provides an opportunity to fix public finances in a nation that’s likely to see a budget shortfall of more than 11% of GDP this year.
Senegal plans to slash its budget deficit to 3% of gross domestic product by 2027 by cutting government expenditure and boosting tax collections from next year, Prime Minister Ousmane Sonko said last week.
Woodside Energy Group Ltd., Australia’s biggest oil and gas producer, started its first oil production at the Sangomar project offshore Senegal in June.
