World Bank to provide Gambia $56 million
(Ecofin Agency) - The World Bank will provide Gambia a budgetary support valued at about $56 million to help the country’s new government bridge its deficit and provide basic public services.
The West African nation is currently facing an unprecedented economic crisis and despite the numerous promises made by foreign donors, Gambia is still struggling to rebalance its finances. It barely stands below the billion dalasi ($21.75 million) deficit planned for this year.
According to the Gambian minister of finance and economic affairs, Amadou Sanneh, the country suffers from the poor management of the previous administration. Indeed, public deficit which stood at 83.3% of GDP between 2013 and 2016, soared to 120.3% at the end of last year.
It is in sight of this that the Bretton Woods institution decided to rapidly meet the nation’s needs in financing, but also lay the foundations for solid structural reforms.
According to official data, Gambia’s GDP rose by 2.2% in 2016, down from 2015’s 4.3%. The slump is mainly due to foreign exchange reserves contracting, lower agricultural output and political insecurity which impacted tourism, Sanneh said.
Fiacre E. Kakpo