IMF projects recovery for Guinea Bissau economy in 2013

21 February 2013

The International Monetary Fund (IMF) has forecast that the economy of Guinea Bissau will recover this year, following a contraction in 2012 and due to an “upturn in cashew exports,” according to a statement issued Wednesday.

Summarising the six-day visit by a mission to Guinea Bissau, the first since the coup d’Etat in April 2012, the IMF said that the country’s economic activities had been affected by a sharp drop in export volume and prince of cashews and due to a drop in aid from donors following the coup.

However the IMF said that, “although the situation remains difficult due to existing political uncertainties,” it is expected that “the economy will recover in 2013” with an upturn in production and exports of cashews, which are Guinea Bissau’s main export.

The mission discussed the budget proposal for 2013 with the government and noted that, “fiscal stability should be based on a coherent budget plan with prudent projections for internal revenues and foreign donations.”

Discussion about Guinea Bissau will continue during the Spring meetings of the IMF and the World Bank, in Washington (in April), after which another IMF mission will visit Guinea Bissau. (macauhub)