The International Monetary Fund's Executive Board completed the 2026 Article IV Consultation for The Gambia, the fifth review of its Extended Credit Facility arrangement and the second review of its Resilience and Sustainability Facility arrangement. That unlocked immediate disbursements of SDR 22 million under the ECF and SDR 10.36 million under the RSF, while the Board also approved a six-month extension, rephasing and SDR 12.44 million augmentation of the ECF, plus a six-month extension and rephasing of the RSF. The ECF increase is intended to address emerging balance of payments pressures linked to the war in the Middle East, while the RSF extension is meant to give the authorities more time to implement complex climate-related reforms. The IMF said The Gambia's macroeconomic outlook remains broadly favorable but faces elevated downside risks from the war in the Middle East and climate shocks. Growth is projected to slow to 4.7 percent in 2026 from 6 percent in 2025 before stabilizing at around 5 percent over the medium term, while inflation pressures have reemerged. In response to end-2025 spending overruns, fiscal policy is set to tighten in 2026 through additional revenue mobilization and spending reprioritization, with the central bank expected to maintain a data-driven tight stance to contain inflation and protect external stability. The Board also approved waivers for the nonobservance of the end-December 2025 quantitative performance criteria on net domestic borrowing and the domestic primary balance, citing corrective measures taken by the authorities, and emphasized stronger public financial management, state-owned enterprise oversight, governance reforms and continued strengthening of financial supervision. The next Article IV Consultation with The Gambia is expected to take place in line with the Executive Board decision on consultation cycles for members with Fund arrangements.

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