IMF approves Guinea-Bissau assessment and extends aid for another year

4 June 2018

Guinea-Bissau’s economic activity remained robust and gross domestic product (GDP) is expected to have grown by 5.9% in 2017, the International Monetary Fund (IMF) said, adding that it had approved the intervention period under the Extended Credit Facility (ECF) for another year, until July 2019.

In a statement released on Friday in Washington announcing the completion of the fifth evaluation of the Guinea-Bissau support programme, the IMF board said it had released US$4.3 million in funding, increasing its support to the country to US$24.2 million.

Approval of the extension of the Extended Credit Facility, “will ensure macroeconomic stability during the next election period, support reforms focused on increasing tax revenue and address critical infrastructure issues and help finance balance of payments needs.”

In 2017, the country recorded economic growth of 5.9%, with an inflation rate of 1.1%, an external deficit of 0.5% of GDP and a budget deficit of 1.5% of GDP, “with a predicted growth rate of 5.3% this year, although it is subject to risks stemming from a fragile political situation and adverse trade conditions.” (macauhub)