By: Kemo Kanyi
The Monetary Policy Committee of the Central Bank of The Gambia has indicated an average growth in the country’s economic activity in the first nine months of 2024.
Hon. Buah Saidy, the governor of the Central Bank, reported that the economic activity of The Gambia was strong in the third quarter of 2024 and the medium-term outlook remains favourable.
‘’The Central Bank’s Composite Index of Economic Activity (CIEA) indicated growth in economic activity of 4.9 percent in the first nine months of 2024. Staff forecast the economy to grow by 5.7 percent in 2024, unchanged from the August forecast. Growth is to be supported largely by anticipated better cropping season, strong public and private investment spending, household consumption, and rebound in tourism,’’ governor Saidy told reporters in a press briefing at the conference hall of the apex bank on Tuesday.
He, however, stated that the outlook of the projection is clouded with significant risks that include the rising global trade fragmentation, geopolitical tensions, volatility in commodity prices, and climate-related risks. These factors, he added, could potentially weigh on the growth prospects in 2024.
Central Bank’s Business Sentiment Survey
The governor outlined that the third quarter of 2024 showed improved confidence in prospects of the Gambian economy, adding that most respondents expect economic activity to grow in the next three months, reflecting increased optimism.
‘’The survey also highlighted a drop in inflation expectations during the quarter, with respondents hopeful about more stable inflation in the near term,’’ he added.
Governor Saidy intimated that preliminary balance of payments estimates show the current account balance in the first nine months of 2024 moderated to a deficit of US$59.9 million (2.8% of GDP), from a deficit of US$129.3 million (5.9% of GDP), in the corresponding period a year ago.
‘’The narrowing of the current account deficit was driven by stable remittance inflows, program grants, and tourist arrival. However, the goods account balance worsened to a deficit of US$741.1 million (34.0% of GDP), compared to US$657.3 million (30.2% of GDP) in the corresponding period of 2023,’’ the CBG governor noted.