Senegal and France face rising public debt challenges

Senegal is facing significant fiscal challenges as its public debt reached 23,666.8 billion FCFA at the end of 2024, representing approximately 118.8% of its GDP. Tax inspector Ndèye Nangho Dioum warns that short-term debt servicing threatens to consume all available resources, with projected debt charges for 2026 estimated at 5,497.92 billion FCFA, exceeding projected tax revenues of 5,384.8 billion FCFA.

In France, rising public debt levels present long-term fiscal risks. The debt-to-GDP ratio is projected to reach 120% by 2030, up from 85% in 2010. To stabilize this debt, experts suggest that the real long-term interest rate must remain lower than the economic growth rate. This could be achieved through European Central Bank interventions to lower rates or by increasing economic growth through higher productivity or labor volume.