Country Report Senegal April 2011

Economic performance: Power cuts cost the economy 1.4% of growth in 2010

The cost of the chronic power shortages has been put at a loss of 1.4% of potential economic growth, according to the Ministry of Economy and Finance's research division, with the amount of load-shedded electricity doubling in 2010 compared with the previous year. The measurable impact was most marked in the secondary sector, which saw a 2% fall in value-added activity. Nevertheless, real GDP still managed to grow by 4.2%, according to these latest estimates, given that 76.6% of the "modern" economic sector has supposedly acquired generators. The impact on the larger informal sector, where only 30% of businesses have generator access, will have been much more severe. The government forecasts growth of 4.5% in 2011, driven by infrastructure investment.

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