Resource information
After decades of turmoil and
instability, a period of calm and progress evolved in
Guinea-Bissau in 2009. A military coup in April 2012
interrupted it. A fresh start is needed to alter the
dynamics that kept Guinea-Bissau poor. In 2013, Gross
National Income per capita was US$590. Average economic
growth barely kept pace with population growth. In 2010,
poverty at the national poverty line of US$2 a day was 70
percent; extreme poverty at US$1 a day was 33 percent. These
numbers have increased from their 2002 levels and they are
estimated to have increased further since 2010. It is time
to make a fresh start and turn the page on anemic growth and
poverty. Guinea-Bissau s elections of May and June 2014 are
described by many observers as the freest and fairest in the
country s history. Voter registration and turnout were at
record-levels. The conditions for progress and stability are
favorable. Guinea-Bissau is a rural economy, almost entirely
dependent on a single cash crop: cashew. It is the main
source of income for most of the country s poor. Cashew nuts
are Guinea-Bissau s main export, accounting for 85 to 90
percent of the country s total exports. The balance of
payments is dominated by cashew, on the export side, and
food and fuel, among imports. The economy is open, with
exports and imports by land and sea amounting to more than
70 percent of GDP. Shocks to cashew, rice and oil prices
have a considerable effect on the current account balance.
Official Development Assistance (ODA) makes a critical
contribution to supporting the state budget. In 2011,
Guinea-Bissau ranked 20th among the world s most aid
dependent countries. Recently, policy mistakes aggravated an
already dire situation. However, the 2014 cashew campaign
was been better than the 2013 campaign, and the prospects
for a pick-up in growth have improved.
