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IMF predicts 5% growth in Gambian economy
Thursday, 20 May 2010 23:52
The international Monetary Fund (IMF) has painted an encouraging picture of the performance of the Gambian
economy, predicting further improvement alongside possible growth in a number of key sectors.A statement by the Fund, issued on Thursday 20 May, noted that despite last year’s global economic crisis, and a decreasing performance in the tourism sector and remittances, real GDP growth remained strong, “at just over 5 percent, led by the continued rebound in agriculture.”
This statement is part of a press release issued at the end of an IMF mission to the country, led by David Dunn.
The mission, lasting between 7 and 20 May, 2010, conducted discussions for the 2010 Article IV consultation and the seventh review of Gambia’s program under IMF’s Extended Credit Facility (ECF).
“The Gambian economy has performed well in recent years. Real Gross Domestic Product (GDP) at factor cost grew by an average of nearly 6½ percent during 2007-2009, while annual inflation averaged less than 5 percent,” the Fund’s mission head stated at the conclusion of their study tour.
He added that inflation fell to less than 3 percent at end-2009, largely reflecting a tightened monetary stance for much of the year and steady local prices for food and fuel.
According to the IMF, despite a modest up-tick in early 2010, inflation in Gambia remained low at 4.1 percent in April. Gross international reserves remain at a comfortable level, after reaching nearly 6½ months of imports at end-2009.
The statement went on: “Interest costs, especially on domestic debt, continue to consume a considerable share of government revenues. Overruns in government spending led to a significant fiscal deficit and substantial domestic borrowing in 2009, which added pressure on T-bill yields and interest costs.”
The IMF however noted that while the fiscal outturn in the first quarter of 2010 was better than anticipated, it was insufficient to recoup the large fiscal slippages in 2009. It said that “as a result, the program target on the ceiling on the cumulative basic fiscal balance for March 2010 was exceeded by nearly GMD 90 million (or about 0.3 percent of GDP).”
It added that to ease pressure on interest rates and to create savings from a lower debt burden, the government was committed to returning to the programmed fiscal path for 2010.
While welcoming the Central Bank of The Gambia’s commitment to maintaining low inflation, the mission recommended that as its balance sheet grows, the CBG could gradually increase its holding of government securities purchased in the secondary market, rather than accumulate additional international reserves. It argued that this would not only allow a modest rebalancing of the bank’s portfolio, but that it would also enable the CBG to eventually introduce repo instruments and further improve liquidity management.
Accordingly, the Executive Board of the IMF is expected to discuss the report of the mission later in August 2010.
You can read the full statment on our Business, Finance and Economy section
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Comments
Hi jobis, 30% for the economy. How many % EACH would you give for:
1. infrastructure?
2. health?
3. education?
4. agriculture?
5. women & youth development?
6. communication?
7. energy?
8. etc and etc?
'meaningless with freedom of person'
-should be-
'meaningless without freedom of person'
It said that “as a result, the program target on the ceiling on the cumulative basic fiscal balance for March 2010 was exceeded by nearly GMD 90 million (or about 0.3 percent of GDP)...welcoming the Central Bank of The Gambia’s commitment to maintaining low inflation...”
Comment
Any positive indicator in line with economy is commendable. However there are areas of concern as outlined by IMF for improvement which the CBG should make note of & endeavour to improve upon. The government must also strive to implement policies to ease cost of living with prices of basic commodities still aloof for the average Gambian. Yaya must also review his barbaric tendencies for all improvements are meaningless with freedom of person which is a God given -right. It’s through the contribution of all Gambians both in government & outside, especially those in Diaspora sending remittances home which impacts significantly on the economy.
... continued ...
Balal ma wai,bu ma tegal paski dega bu ma gis la wah...
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