Senegal's staff report for the 2008 Article IV Consultation highlights the rapidly rising energy and food prices, and the high inflation in 2007 that put pressure on the fiscal and external accounts. Senegal's macroeconomic policies were being pursued under an economic program supported by the IMF's Policy Support Instrument (PSI), which was approved in November 2007. Executive Directors observed scope for improving the targeting of the existing measures while minimizing economic distortions so that they remained consistent with macroeconomic stability and debt sustainability.
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