Reading the statement was the Governor of (CBG), Buah Saidy, at the main headquarters in Banjul.
He stated: “This is largely on the back of improved supply conditions for energy and food commodities despite ongoing geopolitical tensions.”
However, he added: “Despite this sustained downward trend, most commodity prices remain volatile and are significantly above pre-pandemic levels, posing an upside risk to the disinflation process.”
Furthermore, Mr Saidy underscored that FAO Food Price Index, a key measure of global food commodity prices, declined slightly in January 2025, attributed to the significant fall in sugar prices that outweighed the increase in dairy products and cereals.
“The index was 1.7 percent lower in January 2025 than it was in December 2024 but remains 6.2 percent higher than a year ago. Similarly, international rice prices saw a significant decline in January 2025 due to subdued demand. The FAO Rice Price Index fell by 4.7 percent from December 2024 to January 2025, and 20.4 percent year-on-year,” he stated.
He also disclosed that The IMF has projected global inflation to decline, from 5.7 percent in 2024 to 4.2 percent in 2025 and further to 3.5 percent in 2026.
Global disinflation continues but progress is slow, he said: “Nevertheless, divergence remains with advanced economies projected to reach their inflation targets sooner than emerging markets and developing economies.”
He added that in sub-Saharan Africa, “inflation is expected to decline at a slightly faster pace in 2025” but will remain higher than earlier projected in 2026.
He highlighted that global economic growth remains stable, underpinned by declining inflation and easing monetary policy in advanced economies.
“The International Monetary Fund (IMF) in its January 2025 World Economic Outlook update, revised global economic growth projections upward to 3.3 percent for 2025, reflecting stronger-than-expected activity in the United States and a moderate recovery in China,” he said, adding: “The OECD and World Bank also anticipate steady, moderate growth for 2025.
“However, escalating uncertainties linked to trade protectionism and geopolitical tensions pose significant risks. These could undermine business and consumer confidence, disrupt global supply chains, and dampen investment and trade flows.”
