Guinea Bissau expected to see economic growth of 4.2 pct

28 May 2013

Guinea Bissau is expected to post economic growth of 4.2 percent this year following a recession of 1.5 percent in 2012, according to the African Economic Outlook report drawn up by four international institutions.

According to the report drawn up by the African Development Bank, the OECD, the African economic Commission and the United Nations Development Programme, the country’s macro-economic situation was affected by the coup d’état of April 2012 leading to a recession of 1.5 percent, following growth of 5.3 percent the previous year.

The budget deficit, which was 2.3 percent of GDP in 2012, is expected to fall to 0.8 percent this year and increase to 1 percent in 2014, as a result of greater budgetary discipline and improved tax collection.

Meanwhile, the European Union has programmes worth 20 billion CFA francs (around 30 million euros) ready to be executed or at an advanced stage of preparation to support the Guinea Bissau population.

This support, according to a statement issued Monday in Bissau by the EU delegation, will essentially focus on health, education, water and electricity, and food.

Sao Tome and Principe, in its turn, is expected to post growth of 4.2 percent this year and 5.8 percent in 2014. Its budget deficit is projected to be 13.4 percent of GDP this year and 13.2 percent in 2014. (macauhub)