Guinea-Bissau: 2002 Article IV Consultation–Staff Report

IMF Staff Country Reports, July 26, 2002

Source details

In 2001, Guinea–Bissau suffered a substantial slowdown in economic activity, with real GDP growth estimated at 0.2 percent.
Contributing factors identified:
- A sizable loss of foreign program financing.
- A drop in the international market prices for cashew nuts of about 30 percent.
- Delays in implementing the demobilization and pre-2000 domestic arrears settlement programs and receiving the concomitant disbursements.
Delays in implementing required structural reforms have contributed significantly to Guinea–Bissau’s current difficulties.

Arrears and debt:
- Pre-2000 domestic arrears settlement program delayed, affecting fiscal and external financing dynamics.
External shocks:
- Cashew nut price decline of about 30 percent had a material negative effect on export earnings and overall activity.
Financing and fiscal space:
- Loss of foreign program financing reduced available resources for stabilization and reform implementation.
Structural reforms:
- Slow implementation of required structural reforms exacerbated economic weakness and constrained recovery prospects.

Publication title: Guinea-Bissau: 2002 Article IV Consultation–Staff Report
Date: July 26, 2002
Pages: 53
Volume: 2002
Issue: 153
Series: Country Report No. 2002/153
DOI: https://doi.org/10.5089/9781451815757.002
Stock No: 1GNBEA0032002
ISBN: 9781451815757
ISSN: 1934-7685
Subjects: Arrears, Commercial banks, Debt relief, External debt, Financial institutions, Poverty, Poverty reduction strategy, Revenue administration
Keywords: April revenue collection, Arrears, CFAF, Commercial banks, CR, deteriorating government finances, excl. grant, expenditure priority policy, government finances, ISCR, Poverty reduction strategy, revenue constraint, wage bill, West Africa

International Monetary Fund. "Guinea-Bissau: 2002 Article IV Consultation–Staff Report", IMF Staff Country Reports 2002, 153 (2002).