The Gambia’s economy has shown steady resilience and recovery, recording a real GDP growth of 5.7% in 2024, according to the World Bank’s Fifth Economic Update for the country. This performance underscores the nation’s successful recovery from the impacts of the COVID-19 pandemic and its ability to withstand persistent global economic challenges.
Growth in 2024 was largely driven by strong activity in the services sector, coupled with rising public and private investment, as well as easing inflation. These factors contributed to improved household consumption and a decline in extreme poverty. Despite these gains, the report noted that structural challenges and external vulnerabilities continue to weigh on the country’s overall economic progress.
A firm monetary policy stance, supported by falling global commodity prices, helped moderate inflation during the year. The Central Bank of The Gambia maintained its policy rate at 17% to stabilize prices, boosting household purchasing power alongside rising labor incomes and increased remittance inflows. Improved domestic revenue mobilization also contributed to a gradual reduction in public debt. However, with debt still elevated at 71.2% of GDP, the World Bank stressed the need for continued fiscal discipline and stronger debt management to secure long-term stability.
The report also highlighted that maintaining sound fiscal policies is crucial to ensuring that public borrowing supports development priorities without undermining sustainability. By improving debt management, The Gambia can strengthen its economic resilience and safeguard progress against potential external shocks.
Looking forward, the medium-term outlook for The Gambia remains positive, with average growth projected at 5.6% through 2027. This trajectory is expected to be supported by broad-based sectoral activity and continued focus on macroeconomic stability. To sustain momentum, the report emphasized addressing structural bottlenecks, reducing regional disparities, and expanding access to essential services and infrastructure to ensure that growth remains inclusive, resilient, and sustainable.
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