afrol News, 1 September - Backed by a strong rebound in agricultural output and the continued growth in the services and construction sectors, Gambian economy is expected to record a 6.5% growth this year, Central Bank figures indicated.

The governor of the Central Bank Bamba Saho said during the first half of the year, money supply grew by 8.5%, compared to 12.9% the previous year.

Mr. Saho said preliminary data on the execution of the government budget showed a decline in total revenue and grants during the first half of 2008. This declined to D1.9 billion or 3.6%.

"The decline is attributed to the lower than projected tax and non-tax revenue. Total expenditure and net lending increased to D2.0 billion, or 13.6% compared to the first half of 2007. The overall budget balance [including grants] on commitment basis was a deficit of D113.0 million, or 1.3% of GDP. Excluding grants, the deficit widened to D164.4 million, or 1.8% of GDP," the governor told a news conference in the capital Banjul.

Governor Saho said the inter-bank foreign exchange market continues to rise as evidenced by the high volume of transactions measured by aggregate sales and purchases of foreign currency, increased to $1.7 billion at end-July 2008, or 13.3% from the previous year.

"The banking system recorded significant asset and deposit growth as well as a strong capital base," he said, adding that the total assets of the banking industry increased to D11.3 billion or 12.2% from end-June 2007. Return on assets declined from 2.1% in March 2008 to 1.5% at end-June.

"From end-December 2007 to July 2008, the Dalasi strengthened by 7.1%, 4.9%, 1.9% and 1.5% against the US Dollar, Pound Sterling, Euro and CFA Franc respectively."

However, the local currency slightly depreciated against major international currencies in June and July.

By staff writer

© afrol News

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