Groundnut exports are expected to rise in 2011-12, in line with our forecast for agricultural growth. The volume of imports will continue to rise steadily, but growth in the import bill is nevertheless expected to decline as international oil and rice prices stabilise. Despite this, the already substantial trade deficit will widen further. Re-exports are expected to recover slowly as domestic demand in Senegal continues to rise, boosting income from transport and improving the services balance. Growth in tourism is expected to falter as economic growth in the EU dips once again. This will limit more substantial improvements in the services balance. Remittances will, similarly, recover only slowly. Overall the current-account deficit is forecast to narrow from an estimated 10.6% of GDP in 2010 to 9% of GDP in 2011 and 8.4% of GDP in 2012, underpinned primarily by slower import growth. The deficit is likely to be financed by a fairly even mix of FDI and external borrowing.