Senegal’s recent protests have shone a light on simmering frustrations over sluggish economic activity and unemployment in the West African state, which have been compounded by a year of coronavirus restrictions.
But many argue that anger also boiled over because of deepening poverty in the nation of 16 million people, especially among the young.
– Tourism sector hit hard –
At the Soumbédioune craft market in central Dakar, usually a draw for tourists looking for souvenirs, merchants are struggling as the pandemic drags on.
Moulaye Ndiaye, a sculptor from Dakar’s crafts market, shares his local observations.
“Everything is slowed down, or rather, everything has completely stopped. For other sectors, the shopkeepers in the city centre, for example, it’s not that bad, they are still working. But we, who are craftsmen, who depend directly on tourism, are very affected by all this.”
Gorra Sarr, a crafts vendor, expresses what he believes is the frustration of the Senegalese people.
“What I can say is that the Senegalese are tired, and they are hungry. If you notice, they have attacked the stores where we sell food. For example, they didn’t attack us because we don’t sell anything to eat.”
Situated in the westernmost part of Africa, Senegal is bordered by Mauritania, Mali, Guinea and Guinea-Bissau. It is surrounded by the Gambia, an English-speaking country with one of the smallest land areas on the continent.
Senegal has a tropical, dry climate and a population of 15.4 million, a quarter of which lives in the region of the capital, Dakar, on 0.3% of the territory.
The country is one of the most popular tourist destinations in West Africa, which is home to Dakar and Saint Louis, two dynamic cultural hubs.
Senegal is also home to several diverse wildlife parks, including the Niokolo-Koba National Park, the Oiseaux du Djoudj National Park, and the Bandia Game Reserve. Senegal is known as the land of “teranga”, which is the Senegalese value of hospitality, respect, and community. Teranga is a Wolof word (one of the national languages) that encompasses the Senegalese spirit of warmth and friendliness to visitors.
Visitors to Senegal are sure to experience a warm welcome on their arrival, as well as throughout their visit. The Senegalese beaches are beautiful and sandy, with rich populations of fish. Savoury Senegalese food is sure to tempt your taste as well.
The pandemic not only hit the hospitality and tourism industries but also slashed foreign remittances which represent about 10% of the country’s GDP.
About two million people had fallen into poverty since the onset of the coronavirus crisis.
Pape Abdou Fall, President of Soumbédioune crafts market’s sculptor’s association, provides some more insight into the situation.
“Before COVID, we were already in a state of crisis, which COVIDhas aggravated. We who work in the tourism sector, it is a total crisis. I can say that 95% of our work is the tourists, because we make wooden sculptures, and the sculptures are bought by tourists.”
– Economic situation –
Between 2014 and 2018, Senegal recorded some of the strongest economic growth in Africa, consistently above 6% per year. Real GDP growth was 5.3% in 2019, down from 6.3% in 2017. It is mainly driven by the services sector, while on the demand side, the main drivers of growth are investment (+12.5%) and exports (+7.2%).
Since the beginning of 2020, the coronavirus pandemic (COVID-19) has significantly changed the country’s economic outlook. In 2020, growth has slowed sharply to an estimated 1.3%, with services (such as tourism and transport) and exports particularly affected. Senegal has responded with containment measures and an ‘economic and social resilience programme’ (ESRP) to protect lives and livelihoods. However, weak budgetary reserves and safety nets, a vulnerable health system and a large informal sector pose challenges.
Economic recovery is likely to be gradual and driven by a strong return of private consumption and investment. The reforms envisaged under the Plan Sénégal Émergent (PSE) need to be deepened so that growth returns to its pre-pandemic trajectory.
A significant influx of private investment is essential to increase Senegal’s productive capacity and sustain export growth. Services continue to dominate GDP, while the primary sector (agriculture, in particular) is the most dynamic engine of growth. The current health crisis has delayed oil and gas projects, which are only expected to contribute to revenues and exports around 2025.
The COVID-19 pandemic risks jeopardising the socio-economic gains from improved access to key services, both in terms of affordability and infrastructure deployment. It could result in severe losses to households through reduced in-work and out-of-work income (especially private remittances), domestic price inflation and disruption of essential service provision.
Senegal’s economy was growing before the pandemic, with its GDP increasing by 5.3% in 2019, according to the International Monetary Fund (IMF).
However, despite the IMF forecasting a recovery this year after a slowdown in 2020, coronavirus restrictions have ravaged Senegal’s large informal sector and growing numbers of people are struggling to make ends meet.
OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.
Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.
Business, building and support services saw the largest gain in employment.
Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.
Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.
Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.
Friday’s report also shed some light on the financial health of households.
According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.
That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.
People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.
That compares with just under a quarter of those living in an owned home by a household member.
Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.
That compares with about three in 10 more established immigrants and one in four of people born in Canada.
This report by The Canadian Press was first published Nov. 8, 2024.
The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.
The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.
CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.
This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.
While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.
Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.
The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.
This report by The Canadian Press was first published Nov. 7, 2024.
Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.
As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.
Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.
A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.
More than 77 per cent of Canadian exports go to the U.S.
Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.
“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.
“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”
American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.
It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.
“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.
“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”
A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.
Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.
“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.
Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.
With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”
“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.
“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”
This report by The Canadian Press was first published Nov. 6, 2024.
