Guinea-Bissau’s economy is expected to grow 4.8 percent in 2016, an International Monetary Fund (IMF) team said in a statement on Thursday.
Such growth would be on par with 2015’s performance when the economy benefited from a good cashew harvest, favourable terms of trade, and enhanced supply of electricity and water, said the IMF team following a visit to the African nation from March 28 to April 7.
“The economic outlook remains favourable, but risks are tilted to the downside. The ongoing recovery in economic activity and exports is expected to continue in 2016,” the team said. It added that one of the risks is lack of progress in structural reforms in the nation.
IMF also expects inflation in Guinea-Bissau to accelerate to 2.6 percent and 3 percent respectively in 2016 and 2017; from 1.5 percent last year. Such rises in consumer prices would be in tandem with increased economic activity in the African nation, it added.
