Senegal’s economy expanded by 6.7 percent in 2025, driven largely by oil production and a rebound in agriculture, but underlying weaknesses in key sectors continue to weigh on the outlook, official data showed.
The growth rate, up slightly from 6.5 percent in 2024, was supported by strong performance in extractive industries linked to hydrocarbons, according to a report released by the Ministry of Economy, Planning and Cooperation.
However, activity outside the oil and agricultural sectors remained subdued, highlighting structural challenges in the broader economy.
Growth in non-extractive and non-agricultural sectors was estimated at just 1.6 percent in 2025, extending a downward trend observed over several years.
Analysts say this points to persistent weaknesses in traditional productive sectors such as manufacturing and services, which are critical for job creation and economic diversification.
Despite the uneven performance, inflation remained contained within the target range set by the Central Bank of West African States, rising modestly to 1.4 percent from 0.8 percent the previous year.
The relatively low inflation was attributed to easing global prices for food and energy, helping to stabilise domestic prices despite some local pressures.
According to the International Monetary Fund, Senegal’s economy showed resilience in 2025 despite a challenging global environment marked by tighter financial conditions.
Fiscal performance remained broadly in line with expectations, supported by stable revenue collection and efforts to contain non-priority spending.
Oil production played a central role in boosting growth, with output exceeding expectations during the year.
Senegal produced 36.1 million barrels of crude oil in 2025, surpassing the initial target of just over 30 million barrels, according to the Ministry of Energy, Petroleum and Mines.
The primary sector also contributed significantly to growth, particularly in the final quarter of the year.
Data from the National Agency of Statistics and Demography showed that agriculture, fishing and livestock activities recorded strong gains, helping to lift overall economic performance.
Fishing output rose sharply, while agriculture and livestock also posted solid growth, reflecting improved conditions in the sector.
However, concerns remain over Senegal’s fiscal position, with rising debt levels posing risks to medium-term stability.
The World Bank has warned that increasing public debt could weigh on macroeconomic prospects, raising borrowing costs and putting pressure on the country’s credit rating.
Looking ahead, growth is expected to slow significantly to around 2.5 percent in 2026 as the initial boost from oil production fades after a full year of output.
Economists say sustaining higher growth will require deeper structural reforms to strengthen non-oil sectors, improve productivity and broaden the economic base.
While the emergence of oil production has provided a short-term lift, the challenge for Senegal will be to translate resource-driven gains into more inclusive and diversified long-term growth.
