The Gambia's economy has shown continued resilience, with real GDP growth reaching 5.7% in 2024, according to the World Bank’s Fifth Economic Update for The Gambia. The report notes that this growth is a result of recovery from the COVID-19 pandemic and the country’s ability to manage ongoing global economic challenges.
Growth was mainly driven by strong performance in the services sector, increased public and private investment, and easing inflation. These factors have supported household consumption and helped reduce extreme poverty. However, structural challenges and external risks still affect the country's economic outlook.
“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. “The expansion in services, coupled with increased investment and consumption, and a moderation in inflation, have all contributed to this positive trajectory. Going forward, it will be important to address structural bottlenecks and mitigate external risks to ensure that growth remains inclusive, resilient, and sustainable.”
Inflationary pressures eased during 2024 due to firm monetary policy and lower global commodity prices. The Central Bank of The Gambia kept its policy rate at 17% to help stabilize prices. This improved household purchasing power alongside rising labor incomes and higher remittance inflows. These trends contributed to a reduction in poverty levels.
Stronger domestic revenue collection has also supported a gradual decline in public debt. However, public debt remains high at 71.2% of GDP. The report highlights the need for continued fiscal discipline and better debt management practices.
“The Gambia’s ongoing economic recovery is a positive sign of resilience and progress,” said Ephrem Niyongabo, World Bank Economist for The Gambia and lead author of the report. “To sustain this momentum, it is important to continue strengthening public debt management. Maintaining debt at sustainable levels through sound fiscal policies will help ensure that public borrowing supports development priorities without compromising long-term economic stability.”
The medium-term outlook for The Gambia is described as encouraging by the World Bank report, with average annual growth expected at 5.6% through 2027 based on broad sectoral activity and focus on fiscal stability. To maintain this path, addressing remaining structural issues and improving resilience against external shocks are considered essential steps by analysts.
The report further stresses that promoting inclusive development will require targeted measures aimed at reducing regional disparities while expanding access to key services and infrastructure for vulnerable groups.