Gambiaj.com – (BANJUL) – The Monetary Policy Committee (MPC) of the Central Bank of The Gambia (CBG) convened on May 22 and 23, 2024, to review current domestic and global economic conditions and trends. The Committee states that in The Gambia, the strong economic growth momentum persists as inflation pressures begin to ease.

According to the latest forecast by the Central Bank, the economy is projected to grow by 5.5 percent in 2024, surpassing the estimated growth rate of 5.3 percent for 2023. This forecast marks a slight upward adjustment of 0.1 percentage points from the February projections.

The anticipated growth is expected to be bolstered by public and private infrastructure investments, household consumption and investment, tourism, and financial services. However, significant risks could impact this positive trajectory, including the uncertain geopolitical environment, volatility in commodity prices, and structural bottlenecks within the domestic economy.

The Central Bank’s latest Business Sentiment Survey for the first quarter of 2024 indicated a notable improvement in business sentiments. The majority of respondents foresee a surge in economic activity over the next three months, driven by robust consumer demand. While optimism is high regarding increased business activity, concerns remain over persistently high inflation expectations.

Despite these concerns, the latest inflation figures show a notable decline, which is expected to help moderate inflation expectations going forward. The easing of inflationary pressures is a positive sign, suggesting that the Central Bank’s efforts to stabilize the economy are bearing fruit.

Overall, The Gambia’s economic outlook for 2024 remains optimistic, with growth driven by key sectors and a more stable inflation environment. However, vigilance is required to navigate the risks that could potentially disrupt this upward trend.