GuineaBissau Economy - 2021

GEOGRAPHICAL NAMES 

Economic overview

Guinea-Bissau is highly dependent on subsistence agriculture, cashew nut exports, and foreign assistance. Two out of three Bissau-Guineans remain below the absolute poverty line. The legal economy is based on cashews and fishing. Illegal logging and trafficking in narcotics also play significant roles. The combination of limited economic prospects, weak institutions, and favorable geography have made this West African country a way station for drugs bound for Europe.

Guinea-Bissau has substantial potential for development of mineral resources, including phosphates, bauxite, and mineral sands. Offshore oil and gas exploration has begun. The country’s climate and soil make it feasible to grow a wide range of cash crops, fruit, vegetables, and tubers; however, cashews generate more than 80% of export receipts and are the main source of income for many rural communities.

The government was deposed in August 2015, and since then, a political stalemate has resulted in weak governance and reduced donor support.

The country is participating in a three-year, IMF extended credit facility program that was suspended because of a planned bank bailout. The program was renewed in 2017, but the major donors of direct budget support (the EU, World Bank, and African Development Bank) have halted their programs indefinitely. Diversification of the economy remains a key policy goal, but Guinea-Bissau’s poor infrastructure and business climate will constrain this effort.

Real GDP growth rate

5.9% (2017 est.)

6.3% (2016 est.)

6.1% (2015 est.)

Inflation rate (consumer prices)

0.2% (2019 est.)

0.3% (2018 est.)

1.6% (2017 est.)

Real GDP (purchasing power parity)

$3.821 billion (2019 est.)

$3.653 billion (2018 est.)

$3.519 billion (2017 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$1.339 billion (2019 est.)

Real GDP per capita

$1,989 (2019 est.)

$1,949 (2018 est.)

$1,925 (2017 est.)

note: data are in 2017 dollars

Gross national saving

8.8% of GDP (2018 est.)

8.4% of GDP (2017 est.)

10.5% of GDP (2015 est.)

GDP - composition, by sector of origin

agriculture: 50% (2017 est.)

industry: 13.1% (2017 est.)

services: 36.9% (2017 est.)

GDP - composition, by end use

household consumption: 83.9% (2017 est.)

government consumption: 12% (2017 est.)

investment in fixed capital: 4.1% (2017 est.)

investment in inventories: 0.2% (2017 est.)

exports of goods and services: 26.4% (2017 est.)

imports of goods and services: -26.5% (2017 est.)

Ease of Doing Business Index scores

Overall score: 43.2 (2020)

Starting a Business score: 75.5 (2020)

Trading score: 59.6 (2020)

Enforcement score: 38.6 (2020)

Agricultural products

rice, cashew nuts, roots/tubers nes, oil palm fruit, plantains, cassava, groundnuts, vegetables, coconuts, fruit

Industries

agricultural products processing, beer, soft drinks

Industrial production growth rate

2.5% (2017 est.)

Labor force

731,300 (2013 est.)

Labor force - by occupation

agriculture: 82%

industry and services: 18% (2000 est.)

Unemployment rate

N/A

Population below poverty line

67% (2015 est.)

Gini Index coefficient - distribution of family income

50.7 (2010 est.)

Household income or consumption by percentage share

lowest 10%: 2.9%

highest 10%: 28% (2002)

Budget

revenues: 246.2 million (2017 est.)

expenditures: 263.5 million (2017 est.)

Taxes and other revenues

18.2% (of GDP) (2017 est.)

Budget surplus (+) or deficit (-)

-1.3% (of GDP) (2017 est.)

Public debt

53.9% of GDP (2017 est.)

57.9% of GDP (2016 est.)

Fiscal year

calendar year

Current account balance

-$27 million (2017 est.)

$16 million (2016 est.)

Exports

$188 million (2018 est.)

$183 million (2017 est.)

Exports - partners

India 50%, Belgium 28%, Cote d'Ivoire 8% (2019)

Exports - commodities

cashews, gold, fish, lumber, aluminum ores (2019)

Imports

$383 million (2018 est.)

$348 million (2017 est.)

Imports - partners

Portugal 31%, Senegal 20%, China 10%, Netherlands 7%, Pakistan 7% (2019)

Imports - commodities

refined petroleum, rice, wheat products, soups/broths, malt extract (2019)

Reserves of foreign exchange and gold

$356.4 million (31 December 2017 est.)

$349.4 million (31 December 2016 est.)

Debt - external

$1.095 billion (31 December 2010 est.)

$941.5 million (31 December 2000 est.)

Exchange rates

Communaute Financiere Africaine francs (XOF) per US dollar -

605.3 (2017 est.)

593.01 (2016 est.)

593.01 (2015 est.)

591.45 (2014 est.)

494.42 (2013 est.)

NOTE: The information regarding GuineaBissau on this page is re-published from the 2021 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of GuineaBissau 2021 information contained here. All suggestions for corrections of any errors about GuineaBissau 2021 should be addressed to the CIA or the source cited on each page.