Centre for Budget and Macroeconomic Transparency Warns of Growing…

Centre for Budget and Macroeconomic Transparency Warns of Growing…

Lamin Dibba, Executive Director of the Centre for Budget and Macroeconomic Transparency (CBMT), has warned that The Gambia is facing a serious economic crisis characterised by persistent inflation, a depreciating dalasi and weak domestic production. Speaking in an interview at the CBMT office in Brusubi, Dibba said the country’s economy lacks both internal and external balance, making it vulnerable to rising living costs and external shocks. “Fundamentally, The Gambia’s economy lacks internal and external balance because domestic production is below potential given our resources, inflation is unstable and still high, and our foreign trade is poorly financed, leading to dalasi depreciation,” he said. According to Dibba, key productive sectors such as agriculture, fisheries and manufacturing remain underdeveloped and have failed to generate sufficient economic growth and employment opportunities. “The country’s most vital economic sectors – agriculture, fisheries and manufacturing – remain underdeveloped, low in productivity and unable to uplift Gambians,” he stated. He noted that the continued depreciation of the dalasi, coupled with rising commodity prices and the increasing cost of living, has weakened the overall health of the economy. “The depreciating local currency, and high domestic prices and cost of living, have affected the economy. Overall, the country’s economic health is weak,” he said. Dibba urged the government to prioritize investment in productive sectors, including agriculture, fisheries, livestock, forestry and tourism, arguing that increased domestic production would reduce import dependence and strengthen economic resilience. “It would significantly boost domestic production by investing hugely in agricultural, fisheries, livestock, forestry and tourism infrastructure and production,” he said, adding that public funds must be used for their intended purposes and protected from embezzlement and mismanagement. He further observed that for more than a decade, the Gambian economy has been driven largely by the services sector, which accounts for more than half of the country’s Gross Domestic Product (GDP), while agriculture, fisheries, forestry and manufacturing have lagged behind. “This has led to what can be described as a sub-productive, import-dependent economy,” he said. Dibba concluded that The Gambia’s foreign trade remains heavily dependent on imports, a situation he said continues to place pressure on the dalasi and contributes to the country’s economic challenges.

Source: Foroyaa Gambia