The Gambia

The Gambia is enjoying a strong economic recovery, with good prospects of sustained growth over the medium term. In the two years since the government of President Barrow took office, The Gambia’s economy has rebounded, with growth exceeding 6½ percent in 2018. Inflation dropped to 6½ percent at end-2018 and gross official reserves reached 2.7 months of prospective imports. These early gains have been enabled by more effective monetary policy and steps to increase domestic revenue and improve public financial management in the context of a Staff-Monitored Program (SMP) that ran from April 2017 through September 2018. To consolidate these gains and establish a track record for a possible arrangement under the Extended Credit Facility (ECF), the authorities are requesting a new SMP covering 2019. Discussions on a possible ECF arrangement are at present held back by the need to reach understandings with The Gambia’s external creditors on the ways to alleviate excessive liquidity pressures associated with external debt service.