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Guinea vs. Senegal

Economy

GuineaSenegal
Economy - overview

Guinea 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 complied with requirements of the Extractive Industries Transparency Initiative by publishing its mining contracts. 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.

Political instability, a reintroduction of the Ebola virus epidemic, low international commodity prices, and an enduring legacy of corruption, inefficiency, and lack of government transparency are factors that could impact Guinea’s future growth. 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 the 2014-15 period and impeded several projects, such as offshore oil exploration and the Simandou iron ore project. The economy, however, grew by 6.6% in 2016 and 6.7% in 2017, mainly due to growth from bauxite mining and thermal energy generation as well as the resiliency of the agricultural sector. The 240-megawatt Kaleta Dam, inaugurated in September 2015, has expanded access to electricity for residents of Conakry. An 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 boosted economic growth, while the mining sector continued 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.

Senegal’s economy is driven by mining, construction, tourism, fisheries and agriculture, which are the primary sources of employment in rural areas. The country's key export industries include phosphate mining, fertilizer production, agricultural products and commercial fishing and Senegal is also working on oil exploration projects. It relies heavily on donor assistance, remittances and foreign direct investment. Senegal reached a growth rate of 7% in 2017, due in part to strong performance in agriculture despite erratic rainfall.

President Macky SALL, who was elected in March 2012 under a reformist policy agenda, inherited an economy with high energy costs, a challenging business environment, and a culture of overspending. President SALL unveiled an ambitious economic plan, the Emerging Senegal Plan (ESP), which aims to implement priority economic reforms and investment projects to increase economic growth while preserving macroeconomic stability and debt sustainability. Bureaucratic bottlenecks and a challenging business climate are among the perennial challenges that may slow the implementation of this plan.

Senegal receives technical support from the IMF under a Policy Support Instrument (PSI) to assist with implementation of the ESP. The PSI implementation continues to be satisfactory as concluded by the IMF’s fifth review in December 2017. Financial markets have signaled confidence in Senegal through successful Eurobond issuances in 2014, 2017, and 2018.

The government is focusing on 19 projects under the ESP to continue The government’s goal under the ESP is structural transformation of the economy. Key projects include the Thiès-Touba Highway, the new international airport opened in December 2017, and upgrades to energy infrastructure. The cost of electricity is a chief constraint for Senegal’s development. Electricity prices in Senegal are among the highest in the world. Power Africa, a US presidential initiative led by USAID, supports Senegal’s plans to improve reliability and increase generating capacity.

GDP (purchasing power parity)
$27.97 billion (2017 est.)
$25.84 billion (2016 est.)
$23.39 billion (2015 est.)

note: data are in 2017 dollars

$54.8 billion (2017 est.)
$51.15 billion (2016 est.)
$48.15 billion (2015 est.)

note: data are in 2017 dollars

GDP - real growth rate
8.2% (2017 est.)
10.5% (2016 est.)
3.8% (2015 est.)
7.2% (2017 est.)
6.2% (2016 est.)
6.4% (2015 est.)
GDP - per capita (PPP)
$2,200 (2017 est.)
$2,000 (2016 est.)
$1,900 (2015 est.)

note: data are in 2017 dollars

$3,500 (2017 est.)
$3,300 (2016 est.)
$3,200 (2015 est.)

note: data are in 2017 dollars

GDP - composition by sector
agriculture: 19.8% (2017 est.)
industry: 32.1% (2017 est.)
services: 48.1% (2017 est.)
agriculture: 16.9% (2017 est.)
industry: 24.3% (2017 est.)
services: 58.8% (2017 est.)
Population below poverty line
47% (2006 est.)
46.7% (2011 est.)
Household income or consumption by percentage share
lowest 10%: 2.7%
highest 10%: 30.3% (2007)
lowest 10%: 2.5%
highest 10%: 31.1% (2011)
Inflation rate (consumer prices)
8.9% (2017 est.)
8.2% (2016 est.)
1.3% (2017 est.)
0.8% (2016 est.)
Labor force
5.558 million (2017 est.)
6.966 million (2017 est.)
Labor force - by occupation
agriculture: 76%
industry: 24% (2006 est.)
agriculture: 77.5%
industry: 22.5%
industry and services: 22.5% (2007 est.)
Unemployment rate
2.7% (2017 est.)
2.8% (2016 est.)
48% (2007 est.)
Distribution of family income - Gini index
39.4 (2007)
40.3 (1994)
40.3 (2011)
Budget
revenues: 1.7 billion (2017 est.)
expenditures: 1.748 billion (2017 est.)
revenues: 4.139 billion (2017 est.)
expenditures: 4.9 billion (2017 est.)
Industries
bauxite, gold, diamonds, iron ore; light manufacturing, agricultural processing
agricultural and fish processing, phosphate mining, fertilizer production, petroleum refining, zircon, and gold mining, construction materials, ship construction and repair
Industrial production growth rate
11% (2017 est.)
7.7% (2017 est.)
Agriculture - products
rice, coffee, pineapples, mangoes, palm kernels, cocoa, cassava (manioc, tapioca), bananas, potatoes, sweet potatoes; cattle, sheep, goats; timber
peanuts, millet, corn, sorghum, rice, cotton, tomatoes, green vegetables; cattle, poultry, pigs; fish
Exports
$3.514 billion (2017 est.)
$1.954 billion (2016 est.)
$2.362 billion (2017 est.)
$2.498 billion (2016 est.)
Exports - commodities
bauxite, gold, diamonds, coffee, fish, agricultural products
fish, groundnuts (peanuts), petroleum products, phosphates, cotton
Exports - partners
China 35.8%, Ghana 20.1%, UAE 11.6%, India 4.3% (2017)
Mali 14.8%, Switzerland 11.4%, India 6%, Cote dIvoire 5.3%, UAE 5.1%, Gambia, The 4.2%, Spain 4.1% (2017)
Imports
$4.799 billion (2017 est.)
$4.43 billion (2016 est.)
$5.217 billion (2017 est.)
$4.966 billion (2016 est.)
Imports - commodities
petroleum products, metals, machinery, transport equipment, textiles, grain and other foodstuffs
food and beverages, capital goods, fuels
Imports - partners
Netherlands 17.2%, China 13.2%, India 11.8%, Belgium 10%, France 6.9%, UAE 4.5% (2017)
France 16.3%, China 10.4%, Nigeria 8%, India 7.2%, Netherlands 4.8%, Spain 4.2% (2017)
Debt - external
$1.458 billion (31 December 2017 est.)
$1.462 billion (31 December 2016 est.)
$8.571 billion (31 December 2017 est.)
$6.327 billion (31 December 2016 est.)
Exchange rates
Guinean francs (GNF) per US dollar -
9,230 (2017 est.)
9,085 (2016 est.)
9,085 (2015 est.)
7,485.5 (2014 est.)
7,014.1 (2013 est.)
Communaute Financiere Africaine francs (XOF) per US dollar -
617.4 (2017 est.)
593.01 (2016 est.)
593.01 (2015 est.)
591.45 (2014 est.)
494.42 (2013 est.)
Fiscal year
calendar year
calendar year
Public debt
37.9% of GDP (2017 est.)
41.8% of GDP (2016 est.)
48.3% of GDP (2017 est.)
47.8% of GDP (2016 est.)
Reserves of foreign exchange and gold
$331.8 million (31 December 2017 est.)
$383.4 million (31 December 2016 est.)
$1.827 billion (31 December 2017 est.)
$116.9 million (31 December 2016 est.)
Current Account Balance
-$705 million (2017 est.)
-$2.705 billion (2016 est.)
-$1.547 billion (2017 est.)
-$769 million (2016 est.)
GDP (official exchange rate)
$10.25 billion (2017 est.)
$21.11 billion (2017 est.)
Market value of publicly traded shares

NA

NA

Central bank discount rate
22.25% (31 December 2005)
0.25% (31 December 2010)
4.25% (31 December 2009)
Commercial bank prime lending rate
22.2% (31 December 2017 est.)
22.2% (31 December 2016 est.)
5.4% (31 December 2017 est.)
5.3% (31 December 2016 est.)
Stock of domestic credit
$1.762 billion (31 December 2017 est.)
$1.931 billion (31 December 2016 est.)
$6.695 billion (31 December 2017 est.)
$5.219 billion (31 December 2016 est.)
Stock of narrow money
$1.84 billion (31 December 2017 est.)
$1.61 billion (31 December 2016 est.)
$5.944 billion (31 December 2017 est.)
$4.689 billion (31 December 2016 est.)
Stock of broad money
$1.84 billion (31 December 2017 est.)
$1.61 billion (31 December 2016 est.)
$5.944 billion (31 December 2017 est.)
$4.689 billion (31 December 2016 est.)
Taxes and other revenues
16.6% (of GDP) (2017 est.)
19.6% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)
-0.5% (of GDP) (2017 est.)
-3.6% (of GDP) (2017 est.)
Unemployment, youth ages 15-24
total: 1%
male: 1.5%
female: 0.6% (2012 est.)
total: 8.1%
male: 7.4%
female: 8.9% (2015 est.)
GDP - composition, by end use
household consumption: 80.8% (2017 est.)
government consumption: 6.6% (2017 est.)
investment in fixed capital: 9.1% (2017 est.)
investment in inventories: 18.5% (2017 est.)
exports of goods and services: 21.9% (2017 est.)
imports of goods and services: -36.9% (2017 est.)
household consumption: 71.9% (2017 est.)
government consumption: 15.2% (2017 est.)
investment in fixed capital: 25.1% (2017 est.)
investment in inventories: 3.4% (2017 est.)
exports of goods and services: 27% (2017 est.)
imports of goods and services: -42.8% (2017 est.)
Gross national saving
5.1% of GDP (2017 est.)
-6.3% of GDP (2016 est.)
-5.3% of GDP (2015 est.)
21.2% of GDP (2017 est.)
21.3% of GDP (2016 est.)
20.4% of GDP (2015 est.)

Source: CIA Factbook