Coup d’état in 2012 still affects economic activities in Guinea Bissau

19 February 2014

Economic activities in Guinea Bissau remain strongly affected by the results of the Coup D’état on 12 April 2012, according to the conclusions of the latest mission to the country by the International Monetary Fund (IMF).

Published Tuesday in Washington, the statement from the mission, which ws in Guinea Bissau from 10 to 13 February, said that after a 1.5 percent contraction in 2012, the Guinea Bissau economy had yet to recover.

The mission forecasts that in 2013 gross domestic product (GDP) will have grown by 0.3 percent, as a rise in cashew production was offset by a drop in prices, a significant drop in tax revenues and frequent interruptions of electricity and water supply.

Given the limited prospects for revenues over the next few months, particularly before the start of the cashew season, the IMF mission called on the government to control spending and manage its treasury prudently as a way of minimising the accumulation of outstanding salary payments to civil servants.

“Tax and growth prospects for 2014 will depend on the success of the cashew campaign and on foreign aid,” said the IMF.

Headed up by Maurício Villafuerte, the IMF mission met with transitional government official including Finance Minister Gino Mendes, and Economy Minister Soares Sambu, as well as meeting with the National Director of the Central Bank of West African States and Guinea Bissau’s development partners. (macauhub)