The Gambia: Reforms reap strong growth

The Gambia finally seems to be seeing the benefits of years of painful economic reform. Annual growth hit 7% in 2002 and, despite the impact of low rainfall on agricultural output this year, national GDP is still expected to rise by over 4%. Although donor support remains a major source of income and attempted reform of the peanut sector threatened to destabilise the country, there is now real hope that living standards can improve.

The country's relations with the IMF are dominated by its Poverty Reduction and Growth Facility (PRGF) programme. Since the end of 2000, the country has been awarded interim debt relief under the Heavily Indebted Poor Countries (HIPC) initiative, resulting in a 43% reduction in debt service repayments in 2001 in comparison with 2000.