Guinea: 2011 Article IV Consultation and Requests for a Three-Year Arrangement Under the Extended Credit Facility, and for Additional Interim Assistance Under the Enhanced Initiative for Heavily Indebted Poor Countries—Staff Report; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for Guinea
IMF Staff Country Reports, March 26, 2012
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- Guinea: 2011 Article IV Consultation and Requests for a Three-Year Arrangement Under the Extended Credit Facility, and for Additional Interim Assistance Under the Enhanced Initiative for Heavily Indebted Poor Countries—Staff Report; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for Guinea
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Bibliographic details
- Published: March 26, 2012
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475502602.002
Overview
- Paper presents Guinea’s 2011 Article IV Consultation and requests for a three-year arrangement under the Extended Credit Facility, and for additional interim assistance under the Enhanced Initiative for Heavily Indebted Poor Countries.
- Macroeconomic improvement in 2011 has been mainly owed to sharp fiscal adjustment.
Macroeconomic developments and key statistics
- Deficit on the budget’s basic balance reduced from 13 percent of GDP in 2010 to an estimated 2.5 percent of GDP in 2011.
- Monetary financing of the budget was avoided to reduce excess liquidity stemming from large central bank advances in 2009–10.
Fiscal and monetary policy actions
- Sharp fiscal adjustment was the principal driver of macroeconomic improvement in 2011.
- Avoidance of monetary financing aimed to contain excess liquidity originating from central bank advances in 2009–10.
Medium-term challenges and policy priorities
- Reduce inflation.
- Prepare the economy for an expected substantial increase in mining activity.
Subject areas and keywords (as provided)
- Subject: Arrears, Banking, Debt burden, Economic sectors, External debt, Mining sector, Public debt
- Keywords: Africa, Arrears, authority, CR, Debt burden, electricity company, financing, Global, government, government contract, Guinean authorities, IMF staff, ISCR, Mining sector, Paris Club creditor, Sub-Saharan Africa
IMF Staff Country Report No. 2012/063; March 26, 2012; Pages: 134; DOI: https://doi.org/10.5089/9781475502602.002; ISBN: 9781475502602