Economy+(Manon)

The Economy of Senegal Manon

Like many other economies, Senegal's economy has seen its ups and downs. Lately, it has been increasing since its major drop in the 1990's. About 70% of Senegal's labor force is involved in agriculture. After a bad drought in the 1970's, Senegal needed a boost. For many years, the country was left barely hanging on until the Reform program was stimulated in 1993. Till 2008, the country made a 5% increase annually in its GDP. Annual inflation had finally been pushed down to the single digits. However, the unemployment rate is still extremely high, given that many are already involved in commercial farming or only for subsistence. But Senegal is still supported by international donors. With a poor job rate and a sign of more inflation, the country may be entering uneven ground again.

In 1994, the value of the cfa franc was dropped by 50%, increasing the inflation rate to 32%. This change made international imports start to flourish. Inflation in the market caused the prices of all the imports and goods made in Senegal to raise extremely high. About 14 years later, the inflation rate dropped down, letting prices balance out again, especially in the agriculture business. the agriculture business supply's many jobs. Senegal's main produce is peanuts. Just over half (40%) of farm labor is put into farming peanuts. It is one of only a couple of crops that can grow in Senegal.

This past year, the economy hasn't been at its peak. But, last year, the GDP was $13.9 billion, which was much better than in the '90's. The GDP increases 1.25% a year, which helps increase the whole cash flow, imports,exports, and job rate. Job rates are still low. Since most jobs are in rural areas, the agriculture and mining business supplys many jobs for people in rural areas. The child job rate has dropped in the past few years. Since mining is too dangerous and work in the city is too advanced, one of the only venues for children are, once again, agriculture.

Senegal uses the CFA franc for currency. After its devaluation, it caused inflation. The franc was moved to Senegal due to the country being a former french colony. It had already been using the franc after Europe switched to the euro.