After modest GDP growth of 1.5% in 2020, growth is expected to accelerate to 3.8% in 2021 thanks to increased production of cashew nuts, Guinea’s main export product -Bissau. Figures communicated on February 14, 2022 by the International Monetary Fund (IMF), which also cites public investment in critical infrastructure financed from outside, the gradual lifting of measures taken in the fight against Covid-19 and a gradual improvement business confidence.
“Guinea Bissau’s economic conditions are improving,” notes the institution.
The authorities have made satisfactory progress on their reform program at the end of September 2021, she notes. The fiscal situation is expected to improve in 2021, but with a “slight increase” in the stock of public debt, “mainly due to the depreciation of the national currency and the rescheduling of the clearance of arrears inherited from the past” .
For its part, the overall budget deficit is expected to fall to 5.4% of GDP, against 10% of GDP in 2020. This significant adjustment, comments the IMF, reflects the mitigation of the effects linked to the pandemic, a greater mobilization of revenue and expenditure controls adopted as part of the 2021 budget.
