New CBG Boss Updates The Press On The Economy

By: Bakary Touray Jr

The new Governor of the country’s apex bank, Mr. Buah Saidy, has updated the nation on the state of the economy through a media briefing.

Addressing members of the press and senior banking officials of the country, on Thursday, 3^rd December 2020, at his first Monetary Policy Committee (MPC) media briefing since taking up the topmost job at the Central Bank of The Gambia (CBG), Governor Saidy stated that the country’s budget deficit has worsened by D6.1 billion, representing 6.2 percent of the Gross Domestic Product (GDP), in the first three quarters of 2020, compared to D5.5 billion which also represents 6.3 percent of GDP in the same period in 2019.

He reported that the total revenue and grants, in the first three quarter of 2020, stood at D14.2 (14.4 percent GDP), in the first nine months of 2020, compared to D12.3 billion (14.0 percent GDP) in the same period in 2019, with an increment in the government expenditure and net lending by 12.7 percent to 16.4 billion (16.7 percent GDP) from D14.5 billion (16.6 percent of GDP) in the first nine months of 2019.

The apex bank chief went on: “Recurrent expenditure increased by 29.9 percent to 12.0 billion (12.2 percent GDP) compared to D9.3 billion (10.5 percent GDP) in the first nine months of 2019. Capital expenditure on the other hand, declined by 17.4 percent to D4.4 billion (4.4 percent GDP).”

He informed the audience that tax revenue rose by 1.6 percent to D7.7 billion (7.9 percent GDP) in the first three quarters of 2020 from D7.6 billion (8.7 percent GDP) in the corresponding period a year ago.

“Non-tax revenue also increased by 82.9 percent to D2.6 billion (2.6 percent GDP) in the first nine months of 2020, from D1.4 billion (1.6 percent GDP) in the same period last year,” the head of CBG stated.

He also said inflation remained largely subdued, due to weak domestic demand, moderate global oil prices and stable exchange rate, whereas headline inflation declined to 5.6 percent in October 2020, from 7.5 percent in October in 2019, largely driven by the deceleration in non-food inflation.

“The consumer price inflation of food and non-alcoholic beverages decreased from 7.3 percent in October 2019 to 6.6 percent in October in 2020”, Governor Saidy informed.