Gambia News : Gambia's macro-economy on track, says apex bank boss
Aug 30,2009 00:00
by
Anna
The Governor of Gambia's Central Bank, Momodou Bamba Saho, on Saturday
said the country's macro-economy was on track and that the
International Monetary Fund (IMF) successfully completed the fifth
review of the country's Poverty Regulatory Growth Facility arrangement
in August.Briefing the press, Saho said the growth prospects of Gambia's economy were unch anged, with the output projected at 3.6 per cent in 2009, compared to the 6.1 per cent in 2008, due primarily to the slowdown in global economic activity.
According to him, the growth in the key monetary aggregate accelerated last year and supply grew by 18.0 per cent till the end of July, compared to the 10.1 per cent last year.
He revealed that the nation's monetary reserve rose marginally by 1.8 per cent, compared to 6.8 per cent during the same period last year.
The apex bank boss further said the banking industry remained sound, evidenced by the strong growth in assets, capital and reserves and the decrease in the non-performing loans ratio, while the total industry assets increased to D13.3 billion in June, or 18.2 per cent higher than that of a year ago.
Advances to the private sector accounted for 29.3 per cent total assets, rising to D3.9 billion, or 30.2 per cent and loans to all sectors of the economy increased, with the exception of tourism, he said.
"Credit to distributive trade, building and construction, transportation, agriculture, manufacturing and fishing increased by 18.2 per cent, 17.9 per cent, 18.2 per cent, 32.2 per cent, 153.3 per cent and 37.2 per cent respectively, over that of last year.
"Credit to the tourism sector, on the other hand, contracted by 17. 9 per cent," he said, adding that the industry's total deposits increased to D8.5 billion in June, or 22.2 per cent, over that of a year ago.
Saho stated that non-performing loans, as a ratio of gross loans, improved from 8.3 per cent in July 2008 to 7.0 per cent in June 2009 and the capital adequacy ratio was 33.2 per cent in June 2009, well above the minimum threshold of 8.0 per cent.
All the banks met the minimum capital requirements, he noted.
According to him, the end-period inflation, measured by the National Consumer Price Index (NCPI), rose from 3.7 per cent in July 2008 and peaked at 7.0 per cent in February 2009.
"Food consumer price inflation declined to 4.3 per cent in July 2009 from 5.1 per cent in July 2008. In contrast, non-food consumer price inflation rose to 3.8 per cent from 2.5 per cent in July 2008 and core inflation, which excludes the prices of energy and volatile food items, decreased to 3.1 per cent in July 2009 from 4.9 per cent during the same period last year," he stated.