The Senegalese economy should begin a gradual rebound this year after two years of slower than usual growth resulting from both external and domestic shocks. Real GDP growth, which averaged about 2 percent in 2008 and 2009, is expected to pick up to close to 3½ percent. However, the outlook remains uncertain, with risks that the global recovery will be more hesitant than expected, the threat of renewed problems in the energy sector, and financing constraints that limit the government's fiscal room for maneuver. Annual inflation, which has been negative for more than six months, is expected to gradually return to about 2 percent.