of the CFA franc were suspended and border controls tightened by Senegal, and subsequently in January 1994 the CFA franc was devalued as part of a broad adjustment program in the CFA franc zone countries. These developments significantly dampened the Gambian re-exporttrade, which declined in real terms by an estimated 24 percent in 1993/94 and 13 percent in 1994/95. The impact of these factors on economic activity was compounded by the July 1994 military coup, which triggered a cutoff of program aid by donors. The resulting political and economic uncertainties led
This paper reviews economic developments in The Gambia during 1990–95. Economic activity slowed down in 1993/94 and contracted by at least 4 percent in real terms in 1994/95. With the drop in re-export trade and the disruption of the tourist season, domestic government revenues declined by more than 4 percent of GDP during 1993/94–1994/95; foreign grants fell by an additional 2 percent of GDP, owing to the suspension of balance-of-payments assistance following the military coup.