Economy - overview One of the 20 poorest countries in the world, Guinea-Bissau depends mainly on farming and fishing. Cashew crops have increased remarkably in recent years, and the country now ranks sixth in cashew production. Guinea-Bissau exports fish and seafood along with small amounts of peanuts, palm kernels, and timber. Rice is the major crop and staple food. Trade reform and price liberalization are the most successful part of the country's structural adjustment program under IMF sponsorship. The tightening of monetary policy and the development of the private sector have begun to reinvigorate the economy. Inflation dropped sharply in the first quarter of 1997. Membership in the WAMU (West African Monetary Union), begun in May 1997, should help support 5% annual growth and contribute to fiscal discipline. Because of high costs, the development of petroleum, phosphate, and other mineral resources is not a near-term prospect.

GDP purchasing power parity - $1.15 billion (1997 est.)

GDP - real growth rate 5% (1997 est.)

GDP - per capita purchasing power parity - $975 (1997 est.)

GDP - composition by sector
agriculture: 45%
industry: 18%
services: 37% (1997 est.)

Inflation rate - consumer price index 65% (1996)

Labor force 480,000

Unemployment rate NA%

Budget $NA

Industries agricultural products processing, beer, soft drinks

Industrial production growth rate 2.6% (1997 est.)

Electricity - capacity 11,000 kW (1995)

Electricity - production 45 million kWh (1995)

Electricity - consumption per capita 40 kWh (1995)

Agriculture - products rice, corn, beans, cassava (tapioca), cashew nuts, peanuts, palm kernels, cotton; fishing and forest potential not fully exploited

Exports
total value: $25.8 million (f.o.b., 1996 est.)
commodities: cashews 95%, fish, peanuts, palm kernels, sawn lumber (1994)
partners: Spain 35%, India 30%, Thailand 10%, Italy 10% (1995)

Imports
total value: $63 million (f.o.b., 1996 est.)
commodities: foodstuffs, transport equipment, petroleum products, machinery and equipment (1994)
partners: Thailand 27%, Portugal 23%, Japan 6%, Cote d'Ivoire 7% (1995)

Debt - external $953 million (1996 est.)

Economic aid
recipient: ODA, $NA

Currency 1 Communaute Financiere Africaine franc (CFAF) = 100 centimes; note - on 1 May 1997, Guinea-Bissau adopted as its currency the CFA franc following its membership into the BCEAO

Exchange rates CFA francs (CFAF) per US$1 - 608.36 (January 1998), 583.67 (1997); Guinea-Bissauan pesos (PG) per US$1 - 26,373 (1996), 18,073 (1995), 12,892 (1994), 10,082 (1993)
note: as of 2 May 1997, Guinea-Bissau has adopted the CFA franc as the national currency following its membership in BCEAO

Fiscal year calendar year

NOTE: The information regarding Guinea-Bissau on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Guinea-Bissau Economy 1998 information contained here. All suggestions for corrections of any errors about Guinea-Bissau Economy 1998 should be addressed to the CIA.