The development prospect of any nation is dependent on its economy.  Therefore, one would expect that the conspicuous development transformation The Gambia has undergone since July 22, 1994 can only be credited to a parallel achievement in an economic sector that continues to receive clean bills of health from international financial and monetary institutions around the world.

What was a traditionally agriculture-dependent economy has over the years manifested promising tendencies towards industrialization, with the private sector being led by tourism, trading and fisheries, which are experiencing modest growth. Already, the banking and financial sector has been given a new outlook, with no sign of a halt to the inflow of more financial institutions.

The APRC government under President Jammeh, and the policies they instituted over the years have been very receptive of the financial sectors and that has made it possible for the enormous growth in the sector. All these factors have enabled the country to progress and the people to be provided with alternative sources of finances to suit their varying needs, all in the quest for national development.

There is so much capital inflow into the country that we are all spoilt for choice in our banking needs and all these are credited to the government’s judicious management of the economy. The Dalasi did finally stabilize after some shaky times in the last quarter of 2007, with the exchange rate market remaining stable as revealed in the diagram below as per international currencies.

In 2008, growth in GDP of The Gambian economy is projected at 6.5 % promised on continued growth in tourism, telecommunications and construction. We must, however, not ignore possibilities of uncertainties in the global economy which could slow economic output.

Earlier this year, an International Monetary Fund (IMF) staff mission arived in the country to conduct discussions for the 2008 Article IV consultation and the third review under the Poverty Reduction and Growth Facility (PRGF) arrangement. The mission met with The Gambian Secretary of State for Finance and Economic Affairs, the Governor of the Central Bank of The Gambia (CBG) and some other high profile authorities in the economic sector, as well as representatives of the civil society, and the country’s development partners. Their verdict at that meeting amounted to a total approval of the country’s economic policies.

Part of that report revealed that real GDP growth had been realized at over 6 percent a year, a performance that compares favorably with the record of other countries in the region. Growth was said to be led by the construction, tourism, and telecommunications sectors, facilitated by a steady inflow of foreign direct investment and remittances. A relatively tight monetary policy stance and appreciation of the Dalasi helped contain the impact of rising world food and oil prices on inflation in The Gambia. Inflation rose to 6-7 percent during most of 2007 from less than 1 percent in December 2006.

The country also managed to reach the target for the Heavily Indebted Poor Countries (HIPC) Initiative, which enabled it to qualify for debt cancelation from the International Monetary Fund (IMF) and the World Bank Group's International Development Association (IDA). A total relief from all of The Gambia's creditors was worth nearly US$67 million in Net Present Value (NPV) terms, which is equivalent to 27 percent of total debt outstanding after the full use of traditional debt relief mechanisms.

Preliminary data on Government fiscal operations showed that in the five months to the end of May 2008, revenue and grant totaled GMD1.58 billion, more than the GMD1.66 billion in the corresponding period of the previous year. Total expenditure and net lending amounted to GMD1.51 billion, compared to GMD1.48 billion in the same period last year. The overall budget surplus (including Grants) on commitment basis was GMD102.5 million, but lower than the GMD159.6 million during the same period in the previous year. The budget surplus (excluding grants) on commitment basis declined to GMD51.4 million during the period under review from GMD119.7 million in the corresponding period, a year earlier.

As at end-June 2008, gross International Reserves totaled GMD2.9 billion or US $142.8 million equivalent to 5.1 months of import cover.

Development in the foreign exchange market continued to be characterized by increased transaction volumes. Volume of transactions in the inter-bank market increased to US $1.6 billion in the year to end - June 2008 compared to US $1.4 billion a year ago.

Between December 2007 and June 2008, the Dalasi appreciated against all major world currencies traded in the inter-bank foreign exchange market except the Swedish Kroner. The Dalasi strengthened against the British Pound Sterling, US Dollar, Euro and the CFA by 8.5%, 2.3% and 3.7% respectively while depreciating by 3.0% against the Swedish Kroner.