World Bank Reports Gambia’s Economy Grew 5.7% in 2024, Outlook Remains Strong

The World Bank’s Fifth Economic Update for The Gambia has highlighted the country’s continued resilience and recovery, with real GDP growth reaching 5.7% in 2024. The positive performance reflects The Gambia’s ability to rebound from the COVID-19 pandemic and withstand persistent global economic challenges, including high borrowing costs, supply chain pressures, and geopolitical uncertainty.

Growth Drivers in 2024

The report attributes the growth to several key factors:

• Expansion of the services sector, particularly in tourism, trade, and telecommunications.

• Increased public and private investment, supporting infrastructure and business activity.

• Moderation in inflation, which strengthened household consumption and reduced poverty.

Together, these elements improved household purchasing power and contributed to a gradual reduction in extreme poverty.

Policy Measures and Inflation Control

Inflationary pressures began to ease in 2024, supported by the Central Bank of The Gambia’s firm monetary policy stance and declining global commodity prices. The central bank maintained its policy rate at 17%, helping to stabilize prices.

Improved conditions were further supported by:

• Rising labor incomes;

• Higher remittance inflows from the Gambian diaspora;

• Strengthened domestic revenue mobilization.

These dynamics not only enhanced household welfare but also allowed the government to reduce poverty levels and manage debt more effectively.

Debt Challenges and Fiscal Discipline

Despite progress, public debt remains a concern. Debt levels declined gradually but remained elevated at 71.2% of GDP in 2024. The report stresses the need for sustained fiscal discipline, improved debt management, and more efficient allocation of public resources.

“Maintaining debt at sustainable levels through sound fiscal policies will help ensure that public borrowing supports development priorities without compromising long-term economic stability,” said Ephrem Niyongabo, World Bank Economist for The Gambia and lead author of the report.

A Positive Medium-Term Outlook

Looking ahead, The Gambia’s growth is projected to average 5.6% through 2027, driven by broad-based sectoral activity, continued investment in infrastructure, and efforts to preserve macroeconomic stability.

Key priorities identified include:

• Enhancing resilience to external shocks, particularly from commodity price volatility and climate change.

• Strengthening public debt management to ensure fiscal sustainability.

• Expanding access to essential services and infrastructure, especially for vulnerable populations.

• Reducing regional disparities to ensure that economic growth is inclusive.

Building Inclusive and Sustainable Growth

While the macroeconomic outlook remains encouraging, the report warns that structural bottlenecks—such as limited energy access, infrastructure gaps, and governance challenges—must be addressed. It emphasizes the importance of inclusive development, ensuring that the benefits of growth are widely shared.

“The sustained improvement in The Gambia’s economic performance is a testament to the country’s ongoing efforts to strengthen macroeconomic management and stimulate domestic demand,” said Franklin Mutahakana, World Bank Group Resident Representative for The Gambia.

He added that to keep growth resilient, The Gambia must continue focusing on domestic reforms, investment in human capital, and improved governance systems.

The World Bank’s update paints a cautiously optimistic picture: The Gambia has made significant progress in stabilizing its economy, reducing poverty, and strengthening resilience. However, sustained reform, fiscal responsibility, and investment in people and infrastructure will be critical to ensuring that growth is inclusive, sustainable, and resilient in the years to come.