By Modupe Gbadeyanka
The International Monetary Fund (IMF) has said the growth prospects for the Guinean economy remains favourable and that for 2017, growth should continue to be robust at 6.7 percent.
The global financial institution made this disclosure after the completion of a visit to the African nation.
“We expect continued strong performance in the mining sector, accelerated construction activity in hotels and energy, and good agricultural performance,” Giorgia Albertin, who led the IMF staff team to Conakry from May 15 to 25, 2017, said at the end of the meeting.
Albertin led the IMF team to Guinea to discuss recent economic and financial developments and Guinea’s economic prospects. The team prepared the ground for a future visit for the negotiation of a new IMF-supported program.
During the visit, the team met with the Prime Minister, Mr Mamady Youla; President of the National Assembly, Mr Claude Kory Kondiano; and the Economic and Finance Commission of the National Assembly.
The mission also met with Minister of Economy and Finance Malado Kaba, central bank governor Lounceny Nabé, Minister of Budget Mohamed Doumbouya, the Ministers of Energy and Hydraulics, Mines and Geology, Agriculture, Ministers Counselors to the President and other senior government officials, as well as the international partners, the private sector and civil society organizations.
“After the slowdown caused by the Ebola epidemic, economic activity rebounded in 2016, with an estimated real GDP growth of 6.6 percent. This was largely due to accelerated mining production as new projects came online, as well as an increase in agricultural and electricity productions.
“Average inflation remained moderate at 8.2 percent in 2016, reflecting a moderate increase in food prices, a stable exchange rate and a prudent monetary policy.
“Fiscal consolidation efforts have reduced the basic budget deficit in 2016 to 0.7 percent of GDP under the combined effect of increased revenues and reduced spending.
“Imports have risen sharply resulting from new investment projects in the mining sector and have been financed by a large inflow of foreign direct investment. Exports increased, driven by agricultural products, bauxite and gold.
“It will be important to preserve macroeconomic stability, ensure sound growth of banks credit to the private sector and promote higher economic and broad-based inclusive growth.
“Increasing infrastructure investment, while maintaining macroeconomic stability and debt sustainability, will also be important to realize the growth potential of the Guinean economy.
“The IMF team thanks the authorities for their hospitality and for the constructive discussions,” Albertin said in a statement.
Adedapo Adesanya