Guinea-Bissau: Seventh Review Under the Extended Credit Facility and Request for Modification of Performance Criteria and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Guinea-Bissau
IMF Staff Country Reports, December 19, 2024
Source details
- Canonical URL
- Guinea-Bissau: Seventh Review Under the Extended Credit Facility and Request for Modification of Performance Criteria and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Guinea-Bissau
Other formats
Bibliographic details
- Published: December 19, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400296703.002
Summary of the review
- The paper presents IMF’s Seventh Review under the Extended Credit Facility and Request for Modification of Performance Criteria and Financing Assurances Review for Guinea-Bissau.
- Program performance was strong relative to the quantitative targets and broadly satisfactory as regards structural reforms.
- All nine quantitative performance criteria and all three structural benchmarks for end-June 2024 were met.
- Significant progress was made with regard to energy sector reforms.
- Actions have been undertaken to mitigate fiscal risks associated with the public utility company, thereby helping restore its cost recovery.
Macroeconomic outlook and key statistics
- Growth is expected to reach 5 percent in 2024.
- Inflation should average 4.2 percent.
- The fiscal deficit is projected to reach 5 percent of GDP in 2024.
- The authorities remain committed to achieving a fiscal deficit of 3 percent of GDP in 2025, in line with the West African Economic and Monetary Union target.
- The economic outlook remains subject to significant downside risks.
Structural reforms and implementation status
- Structural reforms are being advanced and are described as critical to the successful implementation of the program.
- Energy sector reforms showed notable progress, contributing to the program’s satisfactory assessment on structural measures.
- Fiscal-risk mitigation measures targeting the public utility company have been implemented and are helping to restore cost recovery.
Assessment of program performance
- Program performance: strong relative to quantitative targets.
- Structural reform progress: broadly satisfactory.
- Compliance: all nine quantitative performance criteria and all three structural benchmarks met for end-June 2024.
Risks and considerations
- The economic outlook is subject to significant downside risks (no further quantification provided in the source content).
- Continued implementation of structural reforms and fiscal-risk mitigation is implied to be necessary for program success.
IMF Staff Country Report: Guinea-Bissau: Seventh Review Under the Extended Credit Facility and Request for Modification of Performance Criteria and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Guinea-Bissau
Content in this bundle
- 1gnbea2024003-print-pdf