Bamba Saho, Governor of the Central Bank of The Gambia, has said that the economic growth for The Gambia is projected at 7.0 per cent supported by increased value added from all sectors of the economy.  

Governor Saho made these remarks during a press briefing of the Monetary Policy Committee meeting on Friday at the Central Bank office in Banjul

According to him the improved performance in public finances achieved in the first quarter of 2007, continued through the third quarter.   Domestic revenue out-turn in the third quarter amounted to D829.7 million, which was above the target by D44.8 million   or 5.4 per cent.   The   Central Bank Governor added that both direct and indirect tax revenue were above the target by D51.2 million and D21.8 million, respectively,   while non-tax   revenue was slightly below the target by D6.4 million. He continued that, the overall fiscal balance (commiment basis) including grants was in a surplus of D81.1 million and over the period of nine months to end of September 2007 the surplus amounted to D380.7 million, or 2.4 per cent of the GDP.

Mr. Saho also said indications are that the dalasi would contiune to be relatively strong in medium-term, it is predicated on contiuned maintenance of fiscal and monetary discipline,   continued US Dollar weakness, increased   foreign capital inflows and reduced demand for foreign exchange to service external debts due to prospective debt relief.

"The   banking sector in The Gambia continues to function efficiently.   Banks have sufficient capital and liquidity to meet their funding commitments.   The average capital adequacy ratio was 23.2 per cent in Septeber 2007, higher than the minimum requirement of banks declined by 21.0 per cent to 4.9 per cent, it exceeds the   regulatory requirement of 30.0 per cent," he noted.

He added that, the   Monetary Policy Committee (MPC) has decided to maintain the rediscount rate and the policy rate, at 15.0 per cen.   He further stated that the MPC   would continue to monitor changes in economic conditions and respond appropriately in order to discharge its mandate to maintain price stability.