Guinea Bissau’s economy shows signs of recovery, IMF says

28 June 2006

Bissau, Guinea Bissau, 28 June – International Monetary Fund (IMF) representative Ousmane Dorée said Tuesday in Bissau that guinea Bissau’s macroeconomic indicators showed, “signs of recovery.”

However, he warned of the need to carry out a number of reforms and procedures for the country to come out of its crisis.

Dorée, IMF representative for Senegal and Guinea Bissau and head of the Reference Program mission in Guinea Bissau was speaking to journalists in Bissau at the end of a working meeting with Guinean President, João Bernardo “Nino” Vieira.

Dorée, who was in Bissau on a mission to assess the execution of Guinean macroeconomic programs, forecast 4 percent growth for the country’s gross domestic product (GDP) by the end of the year (3 percent in 2005), but “only if the current trend is maintained.”

For this, he said, the stable political framework would have to be “maintained,” reforms in the civil service and the armed forces “speeded up,” and the State Budget for 2006 “approved” in parliament and “duly executed.”

Since last May the IMF has been negotiating a six month “Reference Program” with the Guinean authorities, aimed at stabilizing the country’s macroeconomic situation, a project, which according to Dorée, is expected to be presented to the IMF Board of Directors next week.

“I got a guarantee from the President that a political effort would be made to carry out reforms and that is what will allow us to present the program to the IMF Board of Directors, perhaps next week, and it is possible that, by mid July, the reference program will have been concluded,” he said. (macauhub)