Home > Country profiles > Economic Outline

Guinea-Bissau: Economic Outline

Economic Indicators

During the last decade, the economic performance of Guinea-Bissau has been mediocre and irregular. The economic vulnerability of the country is mainly due to its dependence on the agricultural sector, in particular to the cultivation of cashews. This central sector of the economy of Guinea-Bissau represents almost two-thirds of GDP. The export of seafood products as well as cashews constitute the main sources of income of the country. The country's growth increased to 4.8% of GDP in 2011 thanks to its good agricultural performance (excellent harvest of cashews in 2011), investments in the construction and engineering sector and the re-engagement of its financial aid sponsors. However, the economy of the country is in its majority dominated by the informal sector. 

Submerged by an external debt of more than EUR 1.1 billion, the World's Bank and the IMF have proceeded to the annulment of more than 90% of the country's debt during the first quarter of 2011. The government made several efforts to diversify its economy with the support of the IMF, such as the continuation of a rigorous budget plan and a meticulous debt control management, in order to concentrate the expenses in the key sectors linked to an economic growth.

Guinea-Bissau is the third poorest country in the world and among the least developed: more than two-thirds of the population are living below the poverty line. Life expectancy does not exceed 51 years. According to the Human Development Index of the UN, Guinea-Bissau ranks 176 among 187 countries. The country must also face a very important demographic challenge: the fertility rate is very high (4.5 children per woman), at this rate, the population will double by 2050.

 

Learn more about Market Analyses about Guinea-Bissau on Globaltrade.net, the Directory for International Trade Service Providers.

 

Indicator of Economic Freedom

Score:

46.5/100

Position:

Controlled

World Rank:

153/179

Regional Rank:

38/45

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

Note: The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

Indicator of Political Freedom

Ranking:

Partly Free

Political Freedom:

4/7

Civil Liberties:

4/7

Map of freedom 2010
Source: Freedom House

Note: The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.

 

Indicator of Freedom of the Press

World Rank:

75/179

Evolution:

8 places down compared to 2010

Source: Worldwide Press Freedom Index 2011, Reporters Without Borders

Note: The world rankings, published annually, measures the violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position is assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire sent to partner organizations,150 RWB correspondents, journalists, researchers, jurists and activists of human rights, including the main criteria - 44 in total - to assess the situation of press freedom in a given country. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).

Sources of General Economic Information

Main Online Newspapers and Portals

allAfrica.com, Guinea-Bissau news
afrolcNews, Guinea-Bissau
Guinea-Bissau News
Guinea-Bissau Newspapers

Useful Resources

Official web site of the Government of Guinea-Bissau (in Spanish)
Bank of Central African States

© Export Entreprises SA, All Rights Reserved.
Last Updates: May 2012