|Governor Amadou Colley|
The Monetary Policy Committee (MPC) of the Central Bank of The Gambia said due to the robust expansion of agriculture, and services, particularly tourism, the growth of the country’s real Gross Domestic Product (GDP) is projected at 7.5 percent in 2014.
“This indicates that The Gambia economy is gradually close to potential,” the Governor of the Central Bank, Amadou Colley said on Friday during the quarterly meeting of the MPC.
Real GDP growth of The Gambia economy for 2013 is provisionally estimated at 5.6 per cent lower than 6.1 per cent in 2012 and the contraction of 4.3 percent in 2011.
Governor Colley projected inflation to moderate to within the target of 5 per cent by end-end December 2014. The projection is premised on prudent implementation of monetary and fiscal policies.
However, he said the outlook to inflation is subject to several upside risks emanating both from the external environment and the domestic economy.
“The most important risks are higher-than-expected oil prices and fiscal and exchange rate pressure,” he said.
In view of the current state of the economy, Governor Colley said the MPC judged the current policy stance to be appropriate and therefore has decided to keep the policy rate unchanged at 20 per cent.
Nonetheless, he said, the MPC recognizes the circumstances could change and is desirous to respond promptly to keep prices under control and ensure that inflation expectations are well anchored.