The Economist Intelligence Unit recently said that The Gambia is likely to see the fourth-highest GDP growth in the world in 2013, with GDP expected to grow by nine percent over the next year.
The Gambia’s expected growth is related to its policies aimed at stabilizing the nation’s agricultural sector and making it more efficient, which may in turn attract more grants and investments from global financial institutions and donors. As a result of the reforms, the International Monetary Fund said in December that crop production could increase by about 20 to 30 percent in 2013, The Gambian Way reports.
The Gambia National Agriculture Investment Plan, which was established in 2010, reformed a number of areas to make improvements to sustainable farming, water management, food security and the development of agricultural chains.
The reforms have helped reassure international organizations in making donations to help develop the Gambian economy. In December, the International Fund for Agricultural Development approved a $20.8 million grant aimed at enhancing the country’s rice and vegetable production through the use of sustainable land and water management as part of an effort to boost small farmers’ incomes, according to The Gambian Way.
After a visit to The Gambia last year, the IMF said that the agricultural policies were bolstering the agricultural industry, as well as the overall economy. The IMF predicted that the Gambian government would reduce domestic borrowing to one percent of GDP next year, which could provide savings and relief for interest rates.