Following the 2016 political transition, GDP growth accelerated to 6.6% in 2018 driven by a recovery in agriculture, tourism, construction, and trade. It then fell to an estimated 5.4% in 2019 due to weak fiscal management and delays in budget support disbursements. Inflation subsided owing to a stable exchange rate, which depreciated by only 3.2% since September 2018, strong food supply, and declining commodity prices. Gambia’s dependence on food and fuel imports widened the current account deficit during 2015–18, but improvements in net services, private capital flows, and remittances from the diaspora mitigated the deficit in 2019. Fiscal consolidation helped to reduce fiscal deficit to 4.1% of GDP in 2019, financed through budget support loans and grants and expensive domestic borrowing, crowding out private investment.
At the end of 2019, the banking sector of Gambia represented a total asset of $0.65 billion.
Credit distributed to businesses represents $0.10 billion and, more broadly, credit to private sector totaling $0.12 billion.