Rédaction Africa Links 24 with babucarr balajo
Published on 2024-03-12 10:02:30
The recent press release by the Monetary Policy Committee (MPC) of the Central Bank attempted to paint a positive picture of the Gambian economy. However, a closer look at the facts reveals a different reality. Dr. Ousman Gajigo expressed his views on the state of the economy, pointing out that the term “resilience” used by the Central Bank to describe the economy is misleading.
The growth rate of the Gambian economy, while seemingly impressive at 5.2% in 2023, translates to only 2.3% on a per capita basis. This highlights the lack of substantial growth at the individual level, indicating a stagnation in economic progress. Over the past seven years, the average per capita GDP growth rate has remained below 2%, raising concerns about the country’s long-term economic prospects.
One of the major factors contributing to the economy’s lack of resilience is its heavy dependence on sectors like agriculture and tourism, which are susceptible to external shocks. The agriculture sector, in particular, faces challenges due to its reliance on rainfall and the absence of investments in irrigation infrastructure. Without adequate government support and funding for agricultural development, the economy remains vulnerable to fluctuations in weather patterns.
Similarly, the tourism sector in The Gambia lacks diversity and strategic planning, relying solely on its proximity to Europe and low-cost offerings to attract visitors. This narrow focus makes the sector highly susceptible to disruptions and competition from other countries with similar attractions. To truly enhance the tourism industry, policymakers need to explore innovative strategies and unique selling points that set The Gambia apart from its competitors.
Furthermore, the country’s international reserves, purportedly able to cover five months of imports, are not as robust as they seem. While remittances and external allocations like special drawing rights (SDR) from the IMF contribute to the reserves, the widening trade deficit and lack of strategic economic policies have a negative impact on the country’s financial stability. The government’s failure to address key issues like agricultural productivity and trade deficits erodes the strength of the international reserves over time.
In conclusion, Dr. Gajigo’s analysis challenges the narrative presented by the Central Bank in its press release. The Gambian economy’s vulnerabilities and lack of sustained growth require urgent attention and strategic interventions to ensure long-term stability and prosperity. Only through comprehensive reforms and targeted investments in critical sectors can The Gambia achieve truly resilient and sustainable economic development.
Read the original article on The Standard
