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Guinea Economy Profile 2017

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Economy - overviewGuinea is a poor country of approximately 12.9 million people in 2016 that possesses the world's largest reserves of bauxite and largest untapped high-grade iron ore reserves, as well as gold and diamonds. In addition, Guinea has fertile soil, ample rainfall, and is the source of several West African rivers, including the Senegal, Niger, and Gambia. Guinea's hydro potential is enormous and the country could be a major exporter of electricity. The country also has tremendous agriculture potential. Gold, bauxite, and diamonds are Guinea’s main exports. International investors have shown interest in Guinea's unexplored mineral reserves, which have the potential to propel Guinea's future growth.

Following the death of long-term President Lansana CONTE in 2008 and the coup that followed, international donors, including the G-8, the IMF, and the World Bank, significantly curtailed their development programs in Guinea. However, the IMF approved a 3-year Extended Credit Facility arrangement in 2012, following the December 2010 presidential elections. In September 2012, Guinea achieved Heavily Indebted Poor Countries completion point status. Future access to international assistance and investment will depend on the government’s ability to be transparent, combat corruption, reform its banking system, improve its business environment, and build infrastructure. In April 2013, the government amended its mining code to reduce taxes and royalties. In 2014, Guinea also complied with requirements of the Extractive Industries Transparency Initiative by publishing its mining contracts and was found to be compliant. Guinea completed its program with the IMF in October 2016 even though some targeted reforms have been delayed. Currently Guinea is negotiating a new IMF program which will be based on Guinea’s new five-year economic plan, focusing on the development of higher value-added products, including from the agro-business sector and development of the rural economy.

The biggest threats to Guinea’s economy are political instability, a reintroduction of the Ebola virus epidemic, and low international commodity prices. Economic recovery will be a long process while the government adjusts to lower inflows of international donor aid following the surge of Ebola-related emergency support. Ebola stalled promising economic growth in 2014-15 and impeded several projects, such as offshore oil exploration and the Simandou iron ore project. The economy, however, grew by 5.2% in 2016, mainly due to growth from bauxite mining and thermal energy generation as well as the resiliency of the agricultural sector. The economy is projected to grow by 4.6% in 2017. The 240 megawatt Kaleta Dam, inaugurated in September 2015, has expanded access to electricity for residents of Conakry. An enduring legacy of corruption, inefficiency, and lack of government transparency, combined with fears of Ebola virus, continue to undermine Guinea's economic viability.

Guinea’s iron ore industry took a hit in 2016 when investors in the Simandou iron ore project announced plans to divest from the project. In 2017, agriculture output and public investment will boost economic growth while the mining sector continues to play a prominent role in economic performance.

Successive governments have failed to address the country's crumbling infrastructure. Guinea suffers from chronic electricity shortages; poor roads, rail lines and bridges; and a lack of access to clean water - all of which continue to plague economic development. The present government, led by President Alpha CONDE, is working to create an environment to attract foreign investment and hopes to have greater participation from western countries and firms in Guinea's economic development.
GDP (purchasing power parity)$16.08 billion (2016 est.)
$15.49 billion (2015 est.)
$15.47 billion (2014 est.)
note: data are in 2016 dollars
GDP (official exchange rate)$6.754 billion (2016 est.)
GDP - real growth rate3.8% (2016 est.)
0.1% (2015 est.)
1.1% (2014 est.)
GDP - per capita (PPP)$1,300 (2016 est.)
$1,300 (2015 est.)
$1,300 (2014 est.)
note: data are in 2016 dollars
Gross national saving3.7% of GDP (2016 est.)
-8.5% of GDP (2015 est.)
-8% of GDP (2014 est.)
GDP - composition, by end usehousehold consumption: 97.2%
government consumption: 8.4%
investment in fixed capital: 13.3%
investment in inventories: 0%
exports of goods and services: 23.5%
imports of goods and services: -42.4% (2016 est.)
GDP - composition by sectoragriculture: 19.7%
industry: 37.7%
services: 42.6% (2016 est.)
Population below poverty line47% (2006 est.)
Labor force5.392 million (2016 est.)
Labor force - by occupationagriculture: 76%
industry and services: 24% (2006 est.)
Unemployment rateNA%
Unemployment, youth ages 15-24total: 1%
male: 1.5%
female: 0.6% (2012 est.)
Household income or consumption by percentage sharelowest 10%: 2.7%
highest 10%: 30.3% (2007)
Distribution of family income - Gini index39.4 (2007)
40.3 (1994)
Budgetrevenues: $1.421 billion
expenditures: $1.857 billion (2016 est.)
Taxes and other revenues21% of GDP (2016 est.)
Budget surplus (+) or deficit (-)-6.5% of GDP (2016 est.)
Inflation rate (consumer prices)7.9% (2016 est.)
8.1% (2015 est.)
Central bank discount rate22.25% (31 December 2005)
Commercial bank prime lending rate22% (31 December 2016 est.)
23% (31 December 2015 est.)
Stock of narrow money$1.701 billion (31 December 2016 est.)
$1.658 billion (31 December 2015 est.)
Stock of broad money$2.093 billion (31 December 2015 est.)
$2.175 billion (31 December 2014 est.)
Stock of domestic credit$1.757 billion (31 December 2016 est.)
$1.863 billion (31 December 2015 est.)
Market value of publicly traded shares$NA
Agriculture - productsrice, coffee, pineapples, mangoes, palm kernels, cocoa, cassava (manioc, tapioca), bananas, potatoes, sweet potatoes; cattle, sheep, goats; timber
Industriesbauxite, gold, diamonds, iron ore; light manufacturing, agricultural processing
Industrial production growth rate6.2% (2016 est.)
Current Account Balance-$839 million (2016 est.)
-$1.363 billion (2015 est.)
Exports$1.705 billion (2016 est.)
$1.611 billion (2015 est.)
Exports - commoditiesbauxite, gold, diamonds, coffee, fish, agricultural products
Exports - partnersIndia 22.1%, Spain 8.2%, Ireland 7.3%, Germany 6.3%, Belgium 5.5%, Ukraine 5.3%, France 4.1% (2015)
Imports$2.185 billion (2016 est.)
$2.173 billion (2015 est.)
Imports - commoditiespetroleum products, metals, machinery, transport equipment, textiles, grain and other foodstuffs
Imports - partnersChina 20.5%, Netherlands 5.4%, India 4.4% (2015)
Reserves of foreign exchange and gold$243.6 million (31 December 2016 est.)
$233.5 million (31 December 2015 est.)
Debt - external$1.332 billion (31 December 2016 est.)
$1.329 billion (31 December 2015 est.)
Stock of direct foreign investment - abroad$67.3 million (31 December 2016 est.)
$67.3 million (31 December 2015 est.)
Exchange ratesGuinean francs (GNF) per US dollar -
8,230 (2016 est.)
7,485.5 (2015 est.)
7,485.5 (2014 est.)
7,014.1 (2013 est.)
6,986 (2012 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on July 9, 2017

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