Senegal: 3.8 point deterioration in the business climate in June

The business climate in Senegal deteriorated by 3.8 points, on a monthly basis, in June 2021 according to an opinion survey carried out by the Directorate of Forecasting and Economic Studies (DPEE).

The indicator that summarizes this business climate, calculated on the basis of the balances of opinion of business leaders, stood at 96.4 against 100.2 in May 2021. It is thus found below its long-term average which is 100. “This deterioration reflects the loss of confidence of service providers and traders,” explains the DPEE.

In the services sub-sector, the business leaders questioned mostly mentioned the difficulties in debt collection (43%), competition deemed unfair (43%), taxation (29%) and insufficient demand. (29%) as the main obstacles to activity, in June 2021. In addition, the business climate sagged (-7.8 points) in the sub-sector, on a monthly basis. According to the DPEE, “This situation reflects the unfavorable stance of the balance of opinion on the outlook for tariffs.”

Regarding trade, debt collection difficulties (100%), insufficient demand (75%), competition deemed unfair (50%) and difficult supply of goods (25%) are the constraints to the activity most cited by the interviewees, in June 2021. In addition, the business climate was less glowing (-1.5 points) on a monthly basis, under the effect of the negative trends of the balances of opinion on sales and orders received. The pessimism of respondents about the prospects contributed to the decline in the indicator of the sub-sector.

In industry, business leaders surveyed by the DPEE mostly complained about the difficult supply of raw materials (35%), supposedly unfair competition (35%), difficult debt collection (26%) and insufficient demand (26%) as the main factors limiting the development of the sector.

However, the business climate improved by 1.5 points in the sub-sector, on a monthly basis, against the backdrop of respondents’ optimism about production prospects.

Regarding the buildings and public works (BTP) sub-sector, all entrepreneurs interviewed cited difficult access to land, the cost of inputs, difficult access to credit and insufficient demand as constraints. Nevertheless, the business climate strengthened by 2.1 points in the sub-sector, on a monthly basis, in connection with the favorable trends in the balances of opinion relating to orders and the outlook for private orders.

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