Economic growth expected to slow slightly

Gambia's economy is expected to continue growing, supported by construction, tourism, and money sent home by citizens living abroad, even though the energy sector faces challenges. The International Monetary Fund (IMF) predicts that real gross domestic product (GDP) growth will slow to 5.1 percent in 2026 and 2027, down from 6 percent in 2025.

IMF review confirms growth drivers

The IMF's latest assessment comes after the sixth review of Gambia's Extended Credit Facility (ECF) agreement and the third review of the Resilience and Growth Facility (RGF). The growth is expected to be driven by the construction and tourism sectors, as well as ongoing remittances from the diaspora. Inflation has decreased slightly, from 7 percent in April to 6.1 percent in September 2026, but it is still above the 5 percent target set by the Central Bank of The Gambia.

Risks remain despite positive outlook

Despite the positive economic outlook, several risks could affect economic activity, such as fluctuating commodity prices, geopolitical tensions, climate-related shocks, and ongoing problems in the energy sector. The IMF still considers the overall economic prospects favorable, but it urges the government to reduce debt-related risks while addressing urgent social needs.

Energy sector needs more support

The energy sector continues to be a major concern, especially after recent electricity supply disruptions. In response, the government has given emergency financial support to the National Water and Electricity Company (NAWEC). The IMF says more efforts are needed to reduce operational losses, improve revenue collection, and strengthen the financial health of the sector.

IMF agrees to additional funding

Following a mission to Banjul, Gambian authorities and IMF staff have reached an agreement on the sixth review of the ECF and the third review of the RGF. This paves the way for an additional 28 million dollars in funding under these programs, though it still needs approval from the IMF's Executive Board. The IMF notes that the program's results have been generally strong, with most targets met, though the fiscal revenue goal was not fully achieved.