IMF Staff Country Reports

This 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. Specifically, significant progress was made with regard to energy sector reforms. Growth is expected to reach 5 percent in 2024 while inflation should average 4.2 percent. The fiscal deficit is projected to reach 5 percent of GDP in 2024 and 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. However, the economic outlook remains subject to significant downside risks. The authorities are advancing structural reforms that are critical to the successful implementation of the program. Actions have been undertaken to mitigate fiscal risks associated with the public utility company, thereby helping restore its cost recovery.