Buah Saidy, The Governor Of The Central Bank Of The Gambia
By Ramatoulie Jawo
Buah Saidy, Governor of the Central Bank of The Gambia, has disclosed that the World Bank projects global commodity prices to decelerate to 6.0 percent in 2025 before further declining to 2.0 percent in 2026.
Governor Saidy made these remarks during the Monetary Policy Committee’s (MPC) first quarterly review of domestic and global economic conditions for 2025, held at the Central Bank’s headquarters in Banjul.
“On commodity prices development the World Bank projects global commodity prices to decelerate to 6.0 percent in 2025 before falling to 2.0 percent in 2026 this is largely on the back of improved supply conditions for energy and food commodities despite ongoing geopolitical tensions however, 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,” he said.
However, he cautioned that despite this downward trend, commodity prices remain volatile and significantly above pre-pandemic levels, posing an ongoing risk to the disinflation process.
Governor Saidy also highlighted the Food and Agriculture Organization’s (FAO) Food Price Index, a key indicator of global food commodity prices, which recorded a slight decline in January 2025. This decrease was largely attributed to a significant drop in sugar prices, which offset rising prices 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 said
He further disclosed that the International Monetary Fund (IMF) projects a decline in global inflation, from 5.7 percent in 2024 to 4.2 percent in 2025, with a further reduction to 3.5 percent in 2026.
“Nevertheless, divergence remains, with advanced economies projected to reach their inflation targets sooner than emerging markets and developing economies.” he explained.
In sub-Saharan Africa, Governor Saidy noted that inflation is projected to decline at a slightly faster pace in 2025, though it will remain higher than previously anticipated in 2026.
On global economic growth, he stated that stability is being supported by easing inflation and monetary policy adjustments 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.”
Governor Saidy also cited projections from the Organisation for Economic Co-operation and Development (OECD) and the World Bank, which anticipate steady, moderate growth in 2025. However, he warned that escalating uncertainties—such as trade protectionism and geopolitical tensions—pose significant risks that could undermine business and consumer confidence, disrupt global supply chains, and dampen investment and trade flows.
“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.” He noted.