BANJUL, September 2, 2025 - The Gambia's economy continues to demonstrate resilience and steady recovery, with real GDP growth reaching 5.7% in 2024, according to the World Bank's Fifth Economic Update for The Gambia. This performance reflects the country's ongoing recovery from the COVID-19 pandemic and its ability to navigate persistent global economic headwinds.
The report highlights that growth was supported by robust activity in the services sector, increased public and private investment, and a moderation in inflation. These factors contributed to improved household consumption and a reduction in extreme poverty. However, structural challenges and external vulnerabilities continue to weigh on the country's economic trajectory.
"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."
In 2024, inflationary pressures eased, supported by a firm monetary policy stance and declining global commodity prices, with the Central Bank of The Gambia maintaining its policy rate at 17% to help stabilize prices. This contributed to improved household purchasing power, alongside rising labor incomes and increased remittance inflows, which collectively helped reduce poverty levels. At the same time, stronger domestic revenue mobilization has helped sustain a gradual decline in public debt. However, with debt levels still elevated at 71.2% of GDP, the report underscores the importance of maintaining fiscal discipline and enhancing debt management to safeguard economic stability and support sustained growth.
"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."
Looking ahead, The Gambia's medium-term outlook remains encouraging, with growth projected to average 5.6% through 2027, underpinned by broad-based sectoral activity and a continued focus on fiscal and macroeconomic stability. To sustain this trajectory, it will be essential to build on recent progress by addressing remaining structural gaps and enhancing resilience to external shocks. The report emphasizes the importance of inclusive development, particularly through targeted efforts to reduce regional disparities and expand access to essential services and infrastructure for the most vulnerable populations.
