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Economy of the Gambia

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Economy of The Gambia
Sir Dawda Kairaba Jawara International Conference Center in Greater Banjul Area in Serrekunda in The Gambia
CurrencyDalasi (GMD, D)
1 July – 29 June
Trade organisations
AU, AfCFTA, CEN-SAD, ECOWAS, G77, WTO
Country group
Statistics
PopulationIncrease 2,468,569 (2023)[3]
GDP
  • Increase $1.773 billion (nominal, 2019 est.)[4]
  • Increase $6.447 billion (PPP, 2019 est.)[4]
GDP rank
GDP growth
  • 4.8% (2017) 6.6% (2018)
  • 6.0% (2019e) 6.3% (2020f)[5]
GDP per capita
  • Increase $755 (nominal, 2019 est.)[4]
  • Increase $2,745 (PPP, 2019 est.)[4]
GDP per capita rank
GDP by sector
  • agriculture: 33%
  • industry: 8.7%
  • services: 58.3%
  • (2008 est.)
6.5% (2020 est.)[4]
Population below poverty line
  • 48.6% (2015)[6]
  • 9.7% on less than $1.90/day (2020)[7]
35.9 medium (2015)[8]
Labour force
  • Increase 781,558 (2019)[11]
  • 53.4% employment rate (2012)[12]
Labour force by occupation
  • agriculture 75%
  • industry, commerce, and services 19%
  • government 6%
Unemployment8.6%
Average gross salary
$0.65 per man-hour (2015)[citation needed]
Main industries
processing peanuts, fish, and hides; tourism; beverages; agricultural machinery assembly, woodworking, metalworking; clothing
External
Exports$182 million (f.o.b., 2010)
Export goods
lumber, cashews, refined petroleum, fish oil, ground nut oil
Main export partners
Imports$251 million (f.o.b., 2010)
Import goods
clothing and apparel, refined petroleum, rice, raw sugar, palm oil
Main import partners
FDI stock
N/A (2011)
$1 Billion (2005 est.)
Public finances
150% of GDP (2020)
RevenuesD4.5 billion (2015)
Expenses$D963.6 million (2015)
Economic aid$45.4 million (1995)
All values, unless otherwise stated, are in US dollars.

The economy of the Gambia is heavily reliant on agriculture.[15] The Gambia has no significant mineral or other natural resources, and has a limited agricultural base. About 75% of the population depends on crops and livestock for its livelihood. Small-scale manufacturing activity features the processing of peanuts, fish, and animal hides.

Short-run economic progress remains highly dependent on foreign aid, and on responsible government economic management as forwarded by International Monetary Fund technical help and advice.

Economic history

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Current GDP per capita Archived 2012-05-04 at the Wayback Machine of the Gambia registered a peak growth of 23.3% in the 1970s. Economic growth slowed by 8.30% in the 1980s and a further 5.20% in the 1990s.

Re-export trade normally constitutes a major segment of economic activity, but the 50% devaluation of the CFA franc in January 1994 made Senegalese goods more competitive and hurt the re-export trade. The Gambia has benefited from a rebound in tourism after its decline in response to the military's takeover in July 1994. Lately, Indian global health expert Dr Edmond Fernandes stated that Gambia presents a global investment opportunity and dissected various areas of business interests.[16]

Macro-economic trend

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This is a chart of trend of gross domestic product of Gambia at market prices estimated[17] by the International Monetary Fund with figures in millions of Dalasi (currency used in Gambia).

Year Gross Domestic Product US dollar exchange Inflation index (2000=100)
1980 435 1.71 Dalasi 13
1985 782 4.09 Dalasi 25
1990 2,367 8.13 Dalasi 65
1995 3,617 9.49 Dalasi 90
2000 5,382 12.78 Dalasi 100
2005 13,174 28.70 Dalasi 158

For purchasing power parity comparisons, the US dollar is exchanged at 4.35 Dalasi only.

The Gambia's economy is characterized by traditional subsistence agriculture, a historic reliance on peanuts or groundnuts for export earnings, a re-export trade built up around its ocean port, low import duties, minimal administrative procedures, a fluctuating exchange rate with no exchange controls, and a significant tourism industry. Average wages in 2007 hover around $1–2 per day.

Economic sectors

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Agriculture

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Main article: Agriculture in The Gambia

Agriculture accounts for 23% of gross domestic product (GDP) and employs 75% of the labor force. Within agriculture, peanut production accounts for 5.3% of GDP, other crops 8.3%, livestock 4.4%, fishing 1.8%, and forestry 0.5%.

Industry

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Industry accounts for 12% of GDP. Manufacturing accounts for 6% of GDP. The limited amount of manufacturing is primarily agriculturally based (e.g., peanut processing, bakeries, a brewery, and a tannery). Other manufacturing activities include soap, soft drinks, and clothing. Services account for 19% of GDP.

Tourism

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Further information: Tourism in the Gambia

Tourism in Gambia has three major strands. There is the traditional sun seeking holiday making use of the hot climate and wonderful beaches. The Gambia is also usually the first African destination for many European birders, due to its easily accessed and spectacular avian fauna. There are also a significant number of African Americans tracing their roots in this country, from which many Africans were taken during the slave trade. While not that many American slaves came from Gambia it was made popular by Alex Haleys historic novel and TV miniseries Roots: The Saga of an American Family

The tourist season is the dry season, during the Northern Hemisphere winter.

Trade

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In 2020 The Gambia's major export markets were Senegal, Mali, Guinea-Bissau, India and China, accounting for 84% of all exports. Neighboring Senegal accounted for 50.5% of exports. This contrasted with 1999 when the UK and other EU countries were The Gambia's major domestic export markets, accounting for 86% of all exports.[18]

In 2020 Norway, China, Cote d'Ivoire, Brazil and Turkey were the major sources of imports, accounting for 49% of the total. This contrasted with 1999 when the UK and other EU countries were the major sources of imports, accounting for 60% of all imports.[18]

Statistics

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GDP:

purchasing power parity $2.264 billion (2008 est.)
real growth rate: 5.5% (2019 est.)[19]
per capita: purchasing power parity - $1,300 (2008 est.)
composition by sector:
agriculture: 33%
industry: 8.7%
services: 58.3% (2008 est.)

Inflation rate (consumer prices): 6.5% (2019 est.)[20]

Labor force: 400,000

Labor force - by occupation: agriculture 75%, industry, commerce, and services 19%, government 6%

Budget:

revenues: $88.6 million
expenditures: $98.2 million, including capital expenditures of $ (Not Available) (FY96/97 est.)

Industries: processing peanuts, fish, and hides; tourism; beverages; agricultural machinery assembly, woodworking, metalworking; clothing

Electricity

production: 75 GWh, entirely from fossil fuels (1998)
consumption: 70 GWh (1998)
Electricity is not imported or exported from the Gambia.

Agriculture - products: peanuts, pearl millet, sorghum, rice, maize, cassava (tapioca), palm kernels; cattle, sheep, goats; forest and fishery resources not fully exploited.

Exports: $132 million (f.o.b., 1998)

commodities: peanuts and peanut products, fish, cotton lint, palm kernels.
partners: Benelux 78%, Japan, United Kingdom, Hong Kong, France, Spain (1997)

Imports: $201 million (f.o.b., 1998)

commodities: foodstuffs, manufactures, fuel, machinery and transport equipment.
partners: Hong Kong, United Kingdom, Netherlands, Ivory Coast, France, Senegal, Belgium (1997)

Debt - external: $430 million (1997 est.)

Economic aid - recipient: $45.400 million (1995)

Currency: Dalasi (D)

Exchange rates: dalasi (D) per US$1 – 43.860 (January 2017), 11.626 (November 1999), 10.643 (1998), 10.200 (1997), 9.789 (1996), 9.546 (1995)

Fiscal year: 1 July - 30 June

See also

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References

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  1. ^ "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 29 September 2019.
  2. ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
  3. ^ "Population, total - Gambia, The". data.worldbank.org. World Bank. Retrieved 16 February 2020.
  4. ^ a b c d e "World Economic Outlook Database, October 2019". IMF.org. International Monetary Fund. Retrieved 23 January 2020.
  5. ^ "Global Economic Prospects, January 2020 : Slow Growth, Policy Challenges" (PDF). openknowledge.worldbank.org. World Bank. p. 147. Retrieved 22 January 2020.
  6. ^ "Poverty headcount ratio at national poverty lines (% of population) - Gambia, The". data.worldbank.org. World Bank. Retrieved 16 February 2020.
  7. ^ "Poverty headcount ratio at $1.90 a day (2011 PPP) (% of population) - Gambia, The". data.worldbank.org. World Bank. Retrieved 16 February 2020.
  8. ^ "GINI index (World Bank estimate) - Gambia, The". data.worldbank.org. World Bank. Retrieved 16 February 2020.
  9. ^ "Human Development Index (HDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 11 December 2019.
  10. ^ "Inequality-adjusted Human Development Index (IHDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 11 December 2019.
  11. ^ "Labor force, total - Gambia, The". data.worldbank.org. World Bank & ILO. Retrieved 16 February 2020.
  12. ^ "Employment to population ratio, 15+, total (%) (national estimate) - Gambia, The". data.worldbank.org. World Bank & ILO. Retrieved 16 February 2020.
  13. ^ "Export Partners of the Gambia". The Observatory of Economic Complexity. Retrieved 19 May 2024.
  14. ^ "Export Partners of the Gambia". The Observatory of Economic Complexity. Retrieved 19 May 2024.
  15. ^ "The Gambia". Encyclopaedia Britannica. Retrieved 29 October 2019.
  16. ^ Fernandes, Dr Edmond. "The Gambia presents a global opportunity for investments – the time to engage is now". The Times of India. ISSN 0971-8257. Retrieved 2024-06-02.
  17. ^ International Monetary Fund
  18. ^ a b "Gambia, The Trade". WITS. World Bank. 6 March 2023. Retrieved 7 March 2023.
  19. ^ "The Gambia and the IMF". IMF. Retrieved 2019-09-14.
  20. ^ "Inflation, consumer prices (annual %) | Data". data.worldbank.org. Retrieved 2019-09-14.

Further reading

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  • Sternfeldt, Ann-Britt. (2000). The Good Tourist in the Gambia: Travelguide for Conscious Tourists. Translated from Swedish by Rolli Fölsch. TheGoodTourist. Sexdrega, Sweden. ISBN 91-974010-4-8.
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