First Oil Export Spurs Record Quarterly GDP Growth in Senegal

BREAKING NEWSJanuary 3, 2025 at 3:56 PM UTC

TLDR

Senegal’s economy grew at a record pace in the third quarter of 2024 as the nation began exporting oil.
Gross domestic product rose 8.9% from the previous quarter and 11.5% year-on-year.
The International Monetary Fund projects the economy will expand by 9.3% in 2025, driven by new oil and gas revenues.

Senegal’s economy grew at a record pace in the third quarter of 2024 as the nation began exporting oil. Gross domestic product rose 8.9% from the previous quarter and 11.5% year-on-year.

That's according to the National Agency of Statistics and Demography. The International Monetary Fund projects the economy will expand by 9.3% in 2025, driven by new oil and gas revenues.

The economic boost is set to continue in early 2025 with Senegal’s first gas exports from BP’s Greater Tortue Ahmeyim (GTA) LNG project. Woodside Energy began oil production at the Sangomar project earlier this year, further solidifying Senegal’s position as a regional energy exporter.

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Key Takeaways

Senegal’s energy-driven economic growth offers a chance to address its fiscal challenges, with a budget deficit exceeding 11% of GDP in 2024. The government plans to cut spending and enhance tax revenue to reduce the deficit to 3% by 2027, according to Prime Minister Ousmane Sonko. While energy revenues provide a short-term boost, analysts caution growth may stabilize at lower rates in the medium term. Senegal’s dollar bonds were little changed, reflecting cautious optimism among investors about the country’s ability to leverage its resource wealth for sustainable development.

Senegal

Economy

GDP

Economic Growth

GDP Growth

Oil & Gas

Oil Production