Economy

The Gambia has a liberal, market-based economy characterised by traditional subsistence agriculture, a historic reliance on groundnuts (peanuts) for export earnings, a re-export trade built up around its ocean port, low import duties, minimal administrative procedures, a fluctuating exchange rate with no exchange controls, and a significant tourism industry.

Agriculture accounts for 29% of gross domestic product (GDP) and employs 75% of the labour force. Within agriculture, peanut production accounts for 6.9% of GDP, other crops 8.3%, livestock 5.3%, fishing 1.8%, and forestry 0.5%. Industry accounts for 12% of GDP. Manufacturing, which accounts for 5.5% of GDP, is primarily agriculturally based (e.g. peanut processing, bakeries, breweries and tanneries). Other manufacturing activities include soap, soft drinks, and clothing. Services account for 19% of GDP.

The UK and other EU countries constitute The Gambia's major domestic export markets, accounting for 86% in total; followed by Asia at 14%; and the African sub region, including Senegal, Guinea-Bissau, and Ghana at 8%. The UK and the other EU countries (Germany, France, Netherlands, Belgium) were the major source of imports, at 60% of the total share of imports, followed by Asia at 23%, and Cote d'Ivoire and other African countries at 17%. The Gambia reports 11% of its exports going to and 14.6% of its imports coming from the United States.

Tourism

The tourism industry in The Gambia increased from just 300 tourists in 1965 to over 2,600 visitors in 1970. The number of visitors has continued to rise sharply throughout the years, and as the government is eager to diversify the economy, it recognised tourism as a potential major foreign exchange source of revenue. However, despite increasing popularity as a tourist destination, infrastructure development has been slow.