The Gambia is set to receive a boost to its economy following the successful completion of discussions with the International Monetary Fund (IMF). The IMF has announced the completion of the sixth review of The Gambia’s economic program supported by the IMF’s Extended Credit Facility (ECF) arrangement.
Despite multiple economic shocks affecting the Gambian economy, the country has met five quantitative performance criteria and three indicative targets by end-December 2022.
The IMF Executive Board is tentatively scheduled to consider the staff report on the review in June 2023. Upon the Board’s approval, SDR 5 million (equivalent to about US$6.7 million) will be made available to The Gambia, providing a much-needed boost to the country’s economy.
The Gambian authorities have been working hard to advance critical structural reforms, and the IMF expects economic growth to be 5.6 percent in 2023 and 6.3 percent in 2024.
The IMF has supported The Gambia’s economic program since 2019, providing financial assistance and technical expertise to help the country achieve sustainable economic growth. The program has focused on macroeconomic stability, growth, job creation, and poverty reduction.
The Gambia’s economy has been hit hard by multiple shocks in recent years, including the COVID-19 pandemic, which has led to a decline in tourism, one of the country’s primary sources of foreign exchange. Despite these challenges, the Gambian authorities have remained committed to implementing reforms to improve the country’s economic prospects.
The successful completion of the sixth review of The Gambia’s economic program is a positive development for the country, providing a much-needed boost to the economy and paving the way for sustainable economic growth in the coming years.
The IMF’s Extended Credit Facility (ECF) arrangement provides financial assistance to low-income countries like The Gambia facing macroeconomic and structural challenges. The ECF arrangement is intended to help countries address the balance of payments problems, support growth and development, and reduce poverty. The IMF has worked closely with The Gambia since 2017 when the government requested an ECF arrangement.
Over the past few years, The Gambia has faced multiple shocks that have affected its economy. The COVID-19 pandemic, locust invasions, and adverse weather conditions have contributed to economic challenges. Despite these challenges, The Gambia has continued implementing necessary structural reforms, which have helped support economic growth.
The IMF’s recent review of The Gambia’s economic program under the ECF arrangement found that the country has made progress in meeting its targets. Five out of six quantitative performance criteria and three out of four indicative targets in end-December 2022 were met. The IMF expects economic growth in The Gambia to be 5.6 percent in 2023 and 6.3 percent in 2024, driven by the recovery of the tourism sector and the implementation of structural reforms.
Upon approval by the IMF Executive Board, the release of SDR 5 million (equivalent to about US$6.7 million) will provide much-needed support to The Gambia’s economy. The funds will help the country address its balance of payments needs and finance essential development projects.
The Gambian authorities have expressed their appreciation for the support the IMF and its staff provided. The IMF’s continued assistance will help The Gambia achieve its long-term economic goals and reduce poverty in the country. With ongoing structural reforms and continued support from international partners like the IMF, The Gambia is well-positioned to emerge from its recent economic challenges and continue sustainable growth and development.