Guinea bissaus economy making appreciable progress imf #
Guinea-Bissau's economy has been making appreciable progress in recent years, with the International Monetary Fund (IMF) playing a significant role in supporting the country's economic development. Here are some key indicators of Guinea-Bissau's economic progress:
- GDP growth: Guinea-Bissau's GDP has been growing steadily, with an average annual growth rate of 5.5% between 2015 and 2020. This growth has been driven by the expansion of the agricultural sector, particularly cashew production, and the growth of the services sector.
- Inflation: Inflation has been under control, with an average annual inflation rate of 2.5% between 2015 and 2020. This has helped to maintain the purchasing power of the population and has contributed to the country's economic stability.
- Fiscal discipline: Guinea-Bissau has made significant progress in improving its fiscal discipline, with a reduction in the budget deficit from 6.5% of GDP in 2015 to 2.5% of GDP in 2020. This has been achieved through a combination of revenue increases and expenditure reductions.
- Debt sustainability: Guinea-Bissau's debt has been declining as a percentage of GDP, from 64.5% in 2015 to 54.5% in 2020. This has improved the country's debt sustainability and has reduced the risk of debt distress.
- IMF support: The IMF has been providing technical and financial assistance to Guinea-Bissau since 2012. The IMF's support has helped the country to implement economic reforms, improve its fiscal discipline, and enhance its debt sustainability.
The IMF has praised Guinea-Bissau's progress in recent years, stating that the country has made significant strides in improving its economic stability and reducing its debt burden. In its latest report on Guinea-Bissau, the IMF noted that the country's economic growth has been driven by the expansion of the agricultural sector and the growth of the services sector, and that the country's fiscal discipline has improved significantly.
However, Guinea-Bissau still faces significant challenges, including:
- Infrastructure development: The country's infrastructure, including roads, ports, and energy generation, is still underdeveloped, which hinders economic growth and development.
- Human development: Guinea-Bissau has one of the lowest human development indices in the world, with high levels of poverty, illiteracy, and infant mortality.
- Security: The country has faced security challenges, including political instability and armed conflicts, which have hindered economic development and investment.
Overall, while Guinea-Bissau's economy has made appreciable progress in recent years, the country still faces significant challenges that need to be addressed to achieve sustainable economic growth and development.