IMF Staff Completes a Staff Visit to Guinea
- Economic activity in Guinea is rebounding, with signs pointing toward continued growth over 6 percent.
- Fiscal consolidation including increased revenues and reduced government spending have brought the basic budget deficit down to 0.7 percent of GDP in 2016.
- IMF sees raising infrastructure spending while maintaining macroeconomic stability will help boost long-term inclusive growth prospects.
An IMF staff team led by Giorgia Albertin visited Conakry from May 15 to 25, 2017, to discuss recent economic and financial developments and Guinea’s economic prospects. The team prepared the ground for a future visit for the negotiation of a new IMF-supported program.
Upon conclusion of the visit Ms. Albertin issued the following statement:
“After the slowdown caused by the Ebola epidemic, economic activity rebounded in 2016, with an estimated real GDP growth of 6.6 percent. This was largely due to accelerated mining production as new projects came online, as well as an increase in agricultural and electricity productions.
“Average inflation remained moderate at 8.2 percent in 2016, reflecting a moderate increase in food prices, a stable exchange rate and a prudent monetary policy.
IMF sees raising infrastructure spending while maintaining macroeconomic stability will help boost long-term inclusive growth prospects
“Fiscal consolidation efforts have reduced the basic budget deficit in 2016 to 0.7 percent of GDP under the combined effect of increased revenues and reduced spending.
“Imports have risen sharply resulting from new investment projects in the mining sector and have been financed by a large inflow of foreign direct investment. Exports increased, driven by agricultural products, bauxite and gold.
“Growth prospects for the Guinean economy remain favorable. For 2017, growth should continue to be robust at 6.7 percent. We expect continued strong performance in the mining sector, accelerated construction activity in hotels and energy, and good agricultural performance.
“It will be important to preserve macroeconomic stability, ensure sound growth of banks credit to the private sector and promote higher economic and broad-based inclusive growth.
“Increasing infrastructure investment, while maintaining macroeconomic stability and debt sustainability, will also be important to realize the growth potential of the Guinean economy.
“The IMF team thanks the authorities for their hospitality and for the constructive discussions.”
The team met with the Prime Minister, Mr. Mamady Youla, the President of the National Assembly, Mr. Claude Kory Kondiano and the Economic and Finance Commission of the National Assembly. The mission also met with Minister of Economy and Finance Malado Kaba, central bank governor Lounceny Nabé, Minister of Budget Mohamed Doumbouya, the Ministers of Energy and Hydraulics, Mines and Geology, Agriculture, Ministers Counselors to the President and other senior government officials, as well as the international partners, the private sector and civil society organizations.
Source: International Monetary Fund (IMF).