By: Fatou Krubally
The International Monetary Fund (IMF) has warned that The Gambia’s rising debt service obligations are consuming about 20 percent of government revenue, even as the country continues to record strong economic growth.
The warning was issued on Thursday during a presentation of the IMF’s Fall 2025 Regional Economic Outlook for Sub-Saharan Africa at the Sir Dawda Kairaba Jawara International Conference Centre in Bijilo.
Presenting the report, IMF Resident Representative to The Gambia, Patrick Gitton, said the country’s economy is projected to grow by 6 percent in 2025, an upward revision from earlier estimates and well above the regional average of 4.1 percent.
According to Gitton, the growth outlook is supported by continued expansion in construction, tourism and agriculture, alongside strong tourist arrivals and steady remittance inflows. He noted that The Gambia has shown resilience in the face of recent global shocks, including the COVID-19 pandemic and geopolitical tensions.
Inflation has also eased significantly. Headline inflation declined from over 18 percent in September 2023 to 6.9 percent by the end of November 2025, reflecting lower global food prices and tighter monetary policy. However, Gitton cautioned that inflation remains above pre-pandemic levels and could persist in the medium term.
Despite these gains, the IMF raised concern over the country’s debt position. Public debt stands at around 75 percent of Gross Domestic Product (GDP). While the debt is assessed as sustainable, its servicing cost is placing heavy pressure on public finances.
“Debt service is absorbing roughly one-fifth of government revenue,” Gitton said, warning that this limits the state’s ability to fund critical sectors such as health, education and infrastructure.
He added that limited access to international financial markets has pushed The Gambia and other low-income countries to rely more heavily on domestic borrowing. In The Gambia, about one-third of public debt is domestic, with banks holding a significant share. Bank exposure to government debt accounts for about 35 percent of total bank assets, higher than the regional average.
The IMF also highlighted declining foreign aid as a growing challenge. Official development assistance to The Gambia is projected to fall in 2025, further tightening fiscal space and increasing pressure on domestic revenue mobilisation.
Looking ahead, the IMF projects that economic growth will gradually ease to around 5 percent by 2027, as construction activity slows and uncertainties related to election cycles emerge.
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By: Fatou Krubally The International Monetary Fund (IMF) has warned that The Gambia’s rising debt service obligations are consuming about…
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