Economy of Senegal

The economy of Senegal is characterized by serious problems, the climatic conditions in Senegal and rapid population growth of the main problems include. The population growth rate in 2006 at 2.34 %. The consequences of high population growth are migration ( rural exodus ) of the rural population due to food shortages. The resulting consequences are problems with the water supply and sanitation and waste disposal. In addition, the increasing traffic in the capital leads to increased noise and air pollution.

Investments are deterred primarily by a lack of infrastructure, however, the state is trying to encourage investment by the road construction. The Senegal occupies the 156th place out of 177 countries assessed in the load Development Index. Gross domestic product amounted to 7.36 billion euros, representing a gross domestic product of 675 euros per capita in 2006. Thus, the GDP in 2006 increased by 2.1 %. In 2007, GDP grew between 4.6 % and 5.4 %. While economic growth in 2005 was 6.5 %, so this rose in 2006 to only 3.3 %. The inflation rate rose from 1.7 % in 2005 to 1.9 % in 2006. The state itself has numerous arrears to some companies. They include the power company SENELEC and the SAR refinery.

Agriculture

In agriculture, 60 % of the population are active, although this sector only contributes 17.6% to the gross domestic product. Through progressive desertification, soil erosion, deforestation and overgrazing crop failures are increasingly achieved, so that agriculture is at risk. The peanut production is the most important foreign exchange earner of the country in which 3 million Senegalese are busy. The peanut harvest declined in 2006 by 21.8% to 550,000 tons. The grain and cotton crop suffered setbacks in the same year. The grain harvest fell by 24% in 2006, the cotton harvest by 3% to 45,000 tonnes. Nevertheless, the production of food for the domestic market rose by 12.7 % to ( 2.0463 million tons).

Mining and Industry

The industrial sector represents 21.4 % of the gross domestic product of the most important industry after the service sector represents, although the industrial production in 2006 fell by 19.2%. Strongly affected by the setback was especially the chemical industry with 69.8 %, which is attributed to the crisis of the Senegalese large company ICS. As before, benefiting almost exclusively the construction of growth. Other areas that are benefiting from growth in electricity, water and gas with 1.7 %, which, however, problems such as poor energy supply hardly fixes. The Senegalese industrial companies total, unlike other African companies a relatively low priority. Only the companies SAR ( 105th place ), Total Senegal ( 184th place ) and Shell Senegal ( 220th place ) occupy the highest place values for Senegalese relations among a total of 500 companies analyzed in Africa. Even the mining recorded a decline of 28.7%. Thus, the phosphate mining in 2006 declined by 60%, which have a capacity of only 584 tons means (before 1451 tons). In addition to phosphate, the country has large iron ore deposits in the east of the country. Zudiesen purpose an agreement was signed to their development between Arcelor Mittal and the Government in February 2007.

Services

The service sector is the most important economic sector and contributes 61% to the gross domestic product. This has been increasing for several years steadily (2004: 6.3% 2005: 5.5% ), 2006 it increased by 4.6% again. The main carrier of the service sector are the transport and telecommunications sector. The development of tourism is blocked primarily by lack of infrastructure and administrative barriers, although the tourism to the peanut cultivation is the most important source of foreign currency. The number of tourists in 2005 was 770,000. The banking sector is hardly diversified and developed, but still profitable. The largest bank in Senegal is SGBS whose share capital currently at 58 % is the French Societe Generale.

Economy (Senegal)

Urbanization Economy of Djibouti Economy of Eritrea Economy of Gabon Economy of Guinea Economy of Madagascar Economy of Namibia Economy of Nigeria Economy of Zambia Economy of Zimbabwe Economy of Somalia Economy of Sudan Economy of Tanzania

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