Guinea-Bissau: Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Guinea-Bissau
IMF Staff Country Reports, February 1, 2021
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- Guinea-Bissau: Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Guinea-Bissau
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Bibliographic details
- Published: February 1, 2021
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513568188.002
Overview and context
- Guinea Bissau is a fragile state with a long history of political instability.
- Poverty is high with about 67 percent of the population living below the poverty line of US$1.90 per day.
- The economy relies heavily on the production and exports of unprocessed cashew nuts, making most households highly vulnerable to cashew nut price shocks and climate change risks.
Key messages and implications
- Structural fragility and recurring political instability underpin macroeconomic vulnerability.
- Extreme poverty is widespread: about 67 percent of the population lives under US$1.90 per day.
- Economic concentration in unprocessed cashew nut production and exports creates high exposure to:
- cashew nut price shocks
- climate change risks
- These factors together imply limited resilience of households and the economy to external shocks and climatic events.
Source: Guinea-Bissau: Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Guinea-Bissau — https://www.imf.org/en/publications/cr/issues/2021/02/01/guinea-bissau-request-for-disbursement-under-the-rapid-credit-facility-press-release-staff-50055
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- 1gnbea2021001