IMF approves US$28.8 million disbursement to The Gambia

The International Monetary Fund (IMF) has approved an immediate disbursement of about US$28.8 million to The Gambia to help meet the country’s financing needs and support social spending and the post-pandemic recovery.

The COVID-19 pandemic continues to represent a significant challenge to The Gambia’s economy. However, growth is expected to rebound to 6.0 percent in 2021, according to the IMF’s forecast.

“…Reflecting the impact of the COVID-19 pandemic, growth in 2020 is estimated at about zero percent. Predicated upon a gradual normalization of global conditions and strong fiscal stimulus, growth is projected to reach 6.0 percent in 2021, and average 6.5 percent per year, over the medium term.

“Downside risks are high, as The Gambia remains fragile and vulnerable to shocks, while being exposed to a prolonged standstill in tourism. The Gambia continues to be assessed at high risk of debt distress, with limited borrowing space,” said the IMF.

The IMF Executive Board today completed the 1st review of The #Gambia’s economic program and approved an additional US$28.8 million to help address the impact of COVID-19. https://t.co/vOk9i5fnsT #IMFAfrica pic.twitter.com/Gp2XrDlZQF

— IMF (@IMFNews) January 15, 2021

However, following the Executive Board discussion, Mr. Tao Zhang, Acting Chair and Deputy Managing Director, was of the opinion that The Gambian authorities’ decisive response to the pandemic has helped to moderate its impact and set the stage for economic recovery.

Amaka E. Nliam