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Gambia News : WAMZ Happy with The Gambia's Economic Performance

According to a press release from the Department of State for Finance and Economic Affairs, the West African Monetary Institute conducted a multilateral surveillance mission to The Gambia from March 3-10, 2008 in accordance with the West African Monetary Zone (WAMZ) Article XV Agreement. During the mission, WAMI staff assessed The Gambia’s performance under the quantitative and qualitative convergence criteria as outlined in the Banjul Declaration of 2005. In doing this staff held discussions with public officers of various Government Agencies and the organised private sector. We want to put on record our appreciation to The Government and people of The Gambia for the wonderful hospitality and co-operation during our visit.

The Mission commends The Gambian authorities for sustaining the momentum of implementing the WAMZ programmes and developing a Strategic Plan consisting of a combination of policy measures aimed at delivering the economic objectives of high growth, low inflation, and a viable external sector. The programme has improved economic management as shown in the prudent management of resources, improved the external reserves position, and engendered macroeconomic stability. Public expenditure and debt management have improved, while reinforced tax administration has led to improved revenue collection. The mission is satisfied with the performance of the economy and in particular, the ability of the authorities to sustain its performance on the convergence scale, leading to the meeting of all the four convergence criteria- inflation (6.0 per cent); Fiscal Deficit as a ratio of GDP (1.0 per cent); Central Banking financing of Fiscal Deficit as a ratio of previous year’s Tax Revenue (0.0) and Gross External Reserves/Months of imports cover (5.5 months). The country also sustained her 2006 performance on the Secondary Criteria, meeting three out of six in 2007.

The mission commends the Gambian Authorities’ commitment on the other structural benchmarks including Statistical Harmonisation, Financial Sector Integration, Single Market Programme, Ratification of WAMZ Legal Instruments and Financial Contributions. However more effort is required on the payments system and sensitisation.

Overall, the mission is of the opinion that the economy performed satisfactorily in 2007.