At the same time, other elements of the macroeconomic environment are likely to remain stable. Current indications are that the government has succeeded in holding the line on expenditures and is expected to meet revenue targets. Available price data also shows that inflation continues at its 1998 level of around 2 percent. Thus far the resident IMF office has had no comment on the government's revised growth estimates. The concern is that a slowdown in GDP growth could weaken the political resolve to maintain and push forward additional economic reforms, particularly with the approaching presidential elections in February 2000.
Economic adjustments are clearly easier to support with a backdrop of robust growth.
We can only hope that this slowdown does not represent the beginnings of some serious cracks in Senegal's fragile economic recovery of the last five years.