By Dipo Olowookere
Executive Board of the International Monetary Fund (IMF) has completed the third review of Guinea-Bissau’s economic performance under the program supported by an Extended Credit Facility (ECF) arrangement.
With the completion of the review, the IMF has released $4.1 million to the country, bringing total disbursements under the arrangement to $15.2 million.
The ECF-supported program aims to restore macroeconomic stability and improve efficiency in public service delivery to foster inclusive growth while protecting social spending.
Program implementation for the third review has been satisfactory. Four of five performance criteria, three of four indicative targets, and six of eight structural benchmarks were met. Corrective measures have been taken in the remaining areas, with several steps already completed.
The IMF said economic activity has remained robust and there has been good progress in improving public financial management.
Supported by favourable terms of trade developments and increased construction, real GDP grew by an estimated 5.1 percent in 2016 while consumer price inflation averaged 1.5 percent.
Solid growth along with improvements in administration has helped boost tax revenue, and expenditure controls have been strengthened, the IMF noted.
Maintaining the positive economic momentum will require further strengthening of public financial management to reduce the fiscal deficit and support macroeconomic stability.
Firm action is also needed to address weaknesses in the banking system, and fundamental reform of the power sector is necessary to stem losses and improve supply, the IMF observed.
It noted that to boost investment and improve public service delivery, it will further be important to strengthen anti-corruption efforts, improve statistics and enhance transparency, and promote healthy competition in the private sector.
Adedapo Adesanya 
Modupe Gbadeyanka