IMF Staff Completes a Staff Visit to Guinea

IMF News, May 26, 2017

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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 and to prepare the ground for a future visit for the negotiation of a new IMF-supported program.
Press Release No. 17/195 dated May 26, 2017.
The views in the statement are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board.

Real GDP growth in 2016: 6.6 percent.
Estimated economic activity in 2016 rebounded after the Ebola epidemic, driven by:
- Accelerated mining production as new projects came online.
- Increased agricultural production.
- Increased electricity production.
Average inflation in 2016: 8.2 percent, reflecting a moderate increase in food prices, a stable exchange rate, and a prudent monetary policy.
Basic budget deficit in 2016: 0.7 percent of GDP, achieved through increased revenues and reduced government spending.
Imports have risen sharply due to 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.
Growth forecast for 2017: 6.7 percent.
Expected drivers for continued robust growth in 2017:
- Continued strong performance in the mining sector.
- Accelerated construction activity in hotels and energy.
- Good agricultural performance.

Preserve macroeconomic stability.
Ensure sound growth of banks' credit to the private sector.
Promote higher economic and broad-based inclusive growth.
Increase infrastructure investment while maintaining macroeconomic stability and debt sustainability to realize Guinea's growth potential.

The IMF team met with:
- Prime Minister Mr. Mamady Youla.
- President of the National Assembly Mr. Claude Kory Kondiano and the Economic and Finance Commission of the National Assembly.
- Minister of Economy and Finance Malado Kaba.
- Central bank governor Lounceny Nabé.
- Minister of Budget Mohamed Doumbouya.
- Ministers of Energy and Hydraulics, Mines and Geology, Agriculture.
- Ministers Counselors to the President, other senior government officials, international partners, the private sector, and civil society organizations.
Statement closing quote from Ms. Albertin: “The IMF team thanks the authorities for their hospitality and for the constructive discussions.”

IMF Press Release No. 17/195 — May 26, 2017