The Gambia Economic Update, Spring 2024: Jumpstarting Inclusive and Sustained Growth

Jumpstarting sustained and inclusive growth is the only way to improve the living conditions of the Gambians. Heightened global and regional uncertainties coupled with vulnerability climate shocks cloud the economic outlook, making efforts to improve the living conditions of the Gambians more challenging. The tightening of financing conditions has led to higher borrowing costs, exacerbating debt vulnerability although increased grants financing helped mitigate fiscal risks while supporting economic activity. The Gambia needs to maintain prudent macro-fiscal policies to build fiscal space, enhance its capacity to absorb shocks, especially in the context of the end of the debt deferral and overlapping external shocks. Fiscal consolidation efforts started in 2023 should be maintained with accelerated revenue collection measures and rationalization of public spending, while preserving much-needed public services provision, investment, and pro-poor spending. Structural issues such as reliance on low-value added tourism, limited private sector development, and low productivity continue to affect the Gambia growth potential, calling and new growth model to enable economic opportunities for all Gambians.