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 – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
VICTORIA – British Columbia is forecasting a record budget deficit and a rising debt of almost $129 billion less than two weeks before the start of a provincial election campaign where economic stability and future progress are expected to be major issues.
Finance Minister Katrine Conroy, who has announced her retirement and will not seek re-election in the Oct. 19 vote, said Tuesday her final budget update as minister predicts a deficit of $8.9 billion, up $1.1 billion from a forecast she made earlier this year.
Conroy said she acknowledges “challenges” facing B.C., including three consecutive deficit budgets, but expected improved economic growth where the province will start to “turn a corner.”
The $8.9 billion deficit forecast for 2024-2025 is followed by annual deficit projections of $6.7 billion and $6.1 billion in 2026-2027, Conroy said at a news conference outlining the government’s first quarterly financial update.
Conroy said lower corporate income tax and natural resource revenues and the increased cost of fighting wildfires have had some of the largest impacts on the budget.
“I want to acknowledge the economic uncertainties,” she said. “While global inflation is showing signs of easing and we’ve seen cuts to the Bank of Canada interest rates, we know that the challenges are not over.”
Conroy said wildfire response costs are expected to total $886 million this year, more than $650 million higher than originally forecast.
Corporate income tax revenue is forecast to be $638 million lower as a result of federal government updates and natural resource revenues are down $299 million due to lower prices for natural gas, lumber and electricity, she said.
Debt-servicing costs are also forecast to be $344 million higher due to the larger debt balance, the current interest rate and accelerated borrowing to ensure services and capital projects are maintained through the province’s election period, said Conroy.
B.C.’s economic growth is expected to strengthen over the next three years, but the timing of a return to a balanced budget will fall to another minister, said Conroy, who was addressing what likely would be her last news conference as Minister of Finance.
The election is expected to be called on Sept. 21, with the vote set for Oct. 19.
“While we are a strong province, people are facing challenges,” she said. “We have never shied away from taking those challenges head on, because we want to keep British Columbians secure and help them build good lives now and for the long term. With the investments we’re making and the actions we’re taking to support people and build a stronger economy, we’ve started to turn a corner.”
Premier David Eby said before the fiscal forecast was released Tuesday that the New Democrat government remains committed to providing services and supports for people in British Columbia and cuts are not on his agenda.
Eby said people have been hurt by high interest costs and the province is facing budget pressures connected to low resource prices, high wildfire costs and struggling global economies.
The premier said that now is not the time to reduce supports and services for people.
Last month’s year-end report for the 2023-2024 budget saw the province post a budget deficit of $5.035 billion, down from the previous forecast of $5.9 billion.
Eby said he expects government financial priorities to become a major issue during the upcoming election, with the NDP pledging to continue to fund services and the B.C. Conservatives looking to make cuts.
This report by The Canadian Press was first published Sept. 10, 2024.
Note to readers: This is a corrected story. A previous version said the debt would be going up to more than $129 billion. In fact, it will be almost $129 billion.
NANAIMO, B.C. – Former Bank of Canada governor Mark Carney says he’ll be advising the Liberal party to flip some the challenges posed by an increasingly divided and dangerous world into an economic opportunity for Canada.
But he won’t say what his specific advice will be on economic issues that are politically divisive in Canada, like the carbon tax.
He presented his vision for the Liberals’ economic policy at the party’s caucus retreat in Nanaimo, B.C. today, after he agreed to help the party prepare for the next election as chair of a Liberal task force on economic growth.
Carney has been touted as a possible leadership contender to replace Justin Trudeau, who has said he has tried to coax Carney into politics for years.
Carney says if the prime minister asks him to do something he will do it to the best of his ability, but won’t elaborate on whether the new adviser role could lead to him adding his name to a ballot in the next election.
Finance Minister Chrystia Freeland says she has been taking advice from Carney for years, and that his new position won’t infringe on her role.
This report by The Canadian Press was first published Sept. 10, 2024.
