Remittances to The Gambia Surge Past $872 Million as Diaspora Support Boosts Economy

By Fatou Sillah

Private remittances to The Gambia exceeded $872 million in 2025, a 12.5 percent increase from the previous year, according to the Central Bank of The Gambia, underscoring the continued importance of money sent home by Gambians abroad in supporting household incomes and the broader economy.

The central bank said the inflows—a key source of foreign exchange for the country—helped sustain domestic consumption and economic activity.

“Private remittance inflows have grown by 12.5 percent, equating to over $872 million in 2025,” the bank said in a statement.

The bank also reported that the economy remains on a steady growth path, noting that real gross domestic product has consistently expanded by more than 5 percent annually since 2021, with momentum expected to continue through 2025 and 2026.

According to the bank, the growth has been driven by strong public and private consumption and investment, as well as resilience in sectors such as financial services, telecommunications, tourism, and agriculture.

Inflation, meanwhile, has shown signs of easing. The bank reported that consumer prices rose by 6.4 percent in January 2026, reflecting a slowdown that has also been visible in food prices.

Still, officials said they were closely monitoring global economic uncertainty, including trade disruptions and geopolitical tensions, which could affect domestic inflation.

The country’s external position also improved in 2025, helped by a strong tourism season, budget support from development partners, and steady remittance inflows. The central bank said the current account deficit narrowed as the trade deficit declined and the services sector expanded.

As a result, the deficit was estimated at 3.2 percent of gross domestic product in 2025, down from 4.4 percent in 2024.

The central bank also said The Gambia’s international reserves rose to the equivalent of 4.4 months of projected import cover as of February 2026. Liquidity in the domestic foreign exchange market remained stable, helping support the Gambian Dalasi.

Officials noted that the Dalasi’s depreciation against the CFA franc and other foreign currencies was largely driven by broader macroeconomic and structural factors rather than any single market transaction.

At the same time, the bank warned that domestic debt levels have continued to rise, with debt servicing costs increasing in 2025.