The Gambia charts course for growth amid prosperity ranking and economic reforms

LEAD

Recent analyses indicate a period of notable economic and developmental focus for The Gambia. The World Bank Group, on June 9, 2026, released two significant reports: "The Gambia Economic Update: Learning Without Earning: Women's Educational Gains and Labor Market Constraints in The Gambia" and the "Public Finance Review: Creating Fiscal Space to Sustain Growth and Boost Job Creation" [from World Bank Gambia]. These reports assess the nation's economic performance, fiscal trajectory, and reform priorities, emphasizing strategies for robust growth, fiscal resilience, and greater economic participation for women [from World Bank Gambia].

Coinciding with these reports, The Gambia has been ranked as Africa’s 10th most prosperous nation in the Atlantic Council’s 2026 Prosperity Index [from What's On Gambia]. This ranking places the country 74th globally with a score of 67.2, positioning it among Africa's top performers, behind countries such as Seychelles, Cape Verde, Mauritius, Ghana, and Senegal [from What's On Gambia]. The Atlantic Council’s index, based on a 30-year dataset, links prosperity to fair institutions and individual liberties [from What's On Gambia].

CONTEXT

This positive international recognition for The Gambia highlights a broader regional trend of African nations making strides in governance and economic development. The emphasis on strengthening public finances and empowering women economically, as outlined by the World Bank, is crucial for many developing economies aiming to translate growth into tangible job creation for their youthful populations [from World Bank Gambia]. The informal sector's prominence and high youth unemployment rates are common challenges across the continent, making the strategies proposed for The Gambia relevant for other nations facing similar structural issues [from World Bank Gambia].

THE GAMBIAN ANGLE

The World Bank's reports provide a detailed look at how these developments directly affect The Gambia. Economic growth is steady, increasing from 5.6% in 2024 to an estimated 5.9% in 2025, driven by agriculture, industry, and services [from World Bank Gambia]. Tourism has shown recovery, with arrivals rising, and remittances along with easing inflation have supported household incomes [from World Bank Gambia]. Extreme poverty has seen a decline from 21.5% to 20.3% [from World Bank Gambia]. However, a key challenge remains: translating this growth into sufficient job opportunities, especially given that 81% of workers are in the informal sector and 41.3% of youth aged 15–34 are not in employment, education, or training [from World Bank Gambia].

The "affected" lens is particularly sharp regarding women's economic participation. Although girls outperform boys in primary and lower-secondary education, this has not translated into improved labor market outcomes for women [from World Bank Gambia]. Women's participation in the workforce stands at 41.9% compared to 54.9% for men, and most women work informally (78.1%). They also earn less, making D31.5 per hour versus D42.4 for men, with wider disparities in rural areas [from World Bank Gambia]. Barriers include limited access to education, heavy care burdens, restricted access to land and finance, and social norms [from World Bank Gambia]. The World Bank recommends stronger school-to-work pathways, better land and property rights for women, and expanded access to finance and childcare as high-return priorities [from World Bank Gambia].

Fiscal vulnerabilities persist despite progress since the 2017 democratic transition. Tax revenue averaged 10.3% of GDP from 2017 to 2024, falling short of the 15% benchmark needed for basic government functions, while fiscal deficits averaged 4.5% of GDP [from World Bank Gambia]. Public debt, though decreasing, was about 76.4% of GDP in 2025, placing the country at a high risk of debt distress [from World Bank Gambia]. The Public Finance Review suggests that closing gaps in key tax instruments could generate an additional 3–4% of GDP in revenue, providing funds for infrastructure, services, and job creation [from World Bank Gambia]. Reforms in public investment management, addressing domestic arrears, integrating off-budget donor projects, and wage bill modernization are also highlighted as measures to create fiscal space [from World Bank Gambia].

While the Atlantic Council's ranking recognizes The Gambia's progress in governance, social inclusion, and democratic reforms, the question remains whether this translates into palpable improvements for ordinary Gambians [from What's On Gambia]. Concerns about the cost of living, unemployment, electricity supply, healthcare, wages, and opportunities for young people are still prevalent [from What's On Gambia]. The real test for The Gambia will be to sustain this progress and convert it into meaningful economic betterment across all sectors of society, ensuring that prosperity extends beyond statistics to directly impact homes, markets, schools, hospitals, and workplaces [from What's On Gambia].