The Gambia: Third Review Under the Extended Credit Facility Arrangement, Requests for a Waiver of Nonobservance of a Performance Criterion, Modifications of Performance Criteria, and Financing Assurances Review, and Request for an Arrangement Under th

Economic momentum remains strong, and inflation is slowly coming down. Despite strong revenue collection efforts, fiscal performance in 2024 was weaker than anticipated due to unbudgeted spending pressures and faster execution of foreign financed capital projects. The foreign exchange market continues to function smoothly, and foreign reserves remain at a comfortable level. Structural reforms are advancing, albeit slowly. The economic outlook is subject to large downside risks, particularly owing to global geopolitical tensions and uncertainty. Exposure to climate risks is significant, primarily through The Gambia’s low elevation and reliance on rain-fed agriculture. The authorities have requested Fund support under the Resilience and Sustainability Facility (RSF) to support their ambitious climate agenda, thereby complementing the ECF in strengthening long-term macroeconomic stability and resilience.