Guinea Economy Profile 2008

Economy - overview

Guinea possesses major mineral, hydropower, and agricultural resources, yet remains an underdeveloped nation. The country has almost half of the world's bauxite reserves and is the second-largest bauxite producer. The mining sector accounts for over 70% of exports. Long-run improvements in government fiscal arrangements, literacy, and the legal framework are needed if the country is to move out of poverty. Investor confidence has been sapped by rampant corruption, a lack of electricity and other infrastructure, a lack of skilled workers, and the political uncertainty due to the failing health of President Lansana CONTE. Guinea is trying to reengage with the IMF and World Bank, which cut off most assistance in 2003, and is working closely with technical advisors from the U.S. Treasury Department, the World Bank and IMF, seeking to return to a fully funded program. Growth rose slightly in 2006-07, primarily due to increases in global demand and commodity prices on world markets, but the standard of living fell. The Guinea franc depreciated sharply as the prices for basic necessities like food and fuel rose beyond the reach of most Guineans. Dissatisfaction with economic conditions prompted nationwide strikes in February and June 2006.

GDP (purchasing power parity)

$9.741 billion (2007 est.)

GDP (official exchange rate)

$4.568 billion (2007 est.)

GDP - real growth rate

1.5% (2007 est.)

GDP - per capita (PPP)

$1,000 (2007 est.)

GDP - composition by sector

agriculture: 22%
industry: 40.5%
services: 37.6% (2007 est.)

Population below poverty line

47% (2006 est.)

Household income or consumption by percentage share

lowest 10%: 1.9%
highest 10%: 41% (2006)

Inflation rate (consumer prices)

20% (2007 est.)

Investment (gross fixed)

11.3% of GDP (2007 est.)

Labor force

3.7 million (2006 est.)

Labor force - by occupation

agriculture: 76%
industry and services: 24% (2006 est.)

Unemployment rate

NA%

Distribution of family income - Gini index

38.1 (2006)

Budget

revenues: $382 million
expenditures: $817.4 million (2007 est.)

Industries

bauxite, gold, diamonds, iron; alumina refining; light manufacturing, and agricultural processing

Industrial production growth rate

7.6% (2007 est.)

Electricity - production

840 million kWh
note: excludes electricity generated at interior mining sites (2006)

Electricity - consumption

832.9 million kWh (2006)

Electricity - exports

0 kWh (2006)

Electricity - imports

0 kWh (2006)

Oil - production

0 bbl/day (2006 est.)

Oil - consumption

9,650 bbl/day (2006 est.)

Oil - imports

8,481 bbl/day (2004)

Oil - exports

0 bbl/day (2004)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2005 est.)

Natural gas - consumption

0 cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

-$175 million (2007 est.)

Agriculture - products

rice, coffee, pineapples, palm kernels, cassava (tapioca), bananas, sweet potatoes; cattle, sheep, goats; timber

Exports

$998 million f.o.b. (2007 est.)

Exports - commodities

bauxite, alumina, gold, diamonds, coffee, fish, agricultural products

Exports - partners

Russia 11.6%, Ukraine 9.6%, Spain 9%, South Korea 8.8%, France 7.7%, US 7.7%, Germany 5.4%, Ireland 5.1% (2006)

Imports

$838 million f.o.b. (2007 est.)

Imports - commodities

petroleum products, metals, machinery, transport equipment, textiles, grain and other foodstuffs

Imports - partners

China 8.6%, France 8%, Netherlands 4.8%, Belgium 4.4% (2006)

Reserves of foreign exchange and gold

$119 million (31 December 2007 est.)

Debt - external

$3.298 billion (31 December 2007 est.)

Market value of publicly traded shares

$NA

Economic aid - recipient

$182.1 million (2005)

Currency (code)

Guinean franc (GNF)

Exchange rates

Guinean francs per US dollar - 4,122.8 (2007), 5,350 (2006), 3,644.3 (2005), 2,225 (2004), 1,984.9 (2003)

Fiscal year

calendar year