World Bank’s Fifth Economic Update for The Gambia reports 5.7% growth in 2024 while warning elevated public debt remains a key vulnerability

The World Bank published its Fifth Economic Update for The Gambia, reporting that real GDP growth reached 5.7% in 2024 as the economy continued its post-pandemic recovery despite persistent global headwinds. Growth was driven by strong services activity, higher public and private investment, and easing inflation, supporting household consumption and a reduction in extreme poverty, while structural challenges and external vulnerabilities continued to weigh on the outlook. Inflationary pressures moderated in 2024, 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. Improved purchasing power alongside rising labor incomes and higher remittance inflows contributed to poverty reduction, and stronger domestic revenue mobilization supported a gradual decline in public debt; however, debt remained elevated at 71.2% of GDP, underpinning the report’s emphasis on fiscal discipline and stronger debt management. The medium-term outlook projects growth averaging 5.6% through 2027, supported by broad-based sectoral activity and continued focus on fiscal and macroeconomic stability. Sustaining the trajectory is linked to addressing remaining structural gaps, strengthening resilience to external shocks, and advancing inclusive development through efforts to reduce regional disparities and expand access to essential services and infrastructure.