Guinea flag

The Economy of Guinea

Guinean Economy

Guinea's map

Economy - overview: Guinea possesses major mineral, hydropower, and agricultural resources, yet remains an underdeveloped nation. The country has almost half of the world's bauxite reserves. The mining sector accounts for over 70% of exports. Long-run improvements in government fiscal arrangements, literacy, and the legal framework are needed if the country is to move out of poverty. Investor confidence has been sapped by rampant corruption, a lack of electricity and other infrastructure, a lack of skilled workers, and the political uncertainty due to the death of President Lansana CONTE in December 2008. Guinea is trying to reengage with the IMF and World Bank, which cut off most assistance in 2003, and is working closely with technical advisors from the U.S. Treasury Department, the World Bank and IMF, seeking to return to a fully funded program. Growth rose slightly in 2006-08, primarily due to increases in global demand and commodity prices on world markets, but the standard of living fell. The Guinea franc depreciated sharply as the prices for basic necessities like food and fuel rose beyond the reach of most Guineans. Dissatisfaction with economic conditions prompted nationwide strikes in February and June 2006.

GDP:

GDP - real growth rate: 2.9% (2008 est.) 1.5% (2007 est.) 2.2% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 22.4% industry: 40.9% services: 36.6% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 1.9% highest 10%: 41% (2006)

Distribution of family income - Gini index: 38.1 (2006)

Inflation rate (consumer prices):

Labor force: 3.7 million (2006 est.)

Labor force - by occupation: agriculture: 76% industry and services: 24% (2006 est.)

Unemployment rate: NA%

Budget: revenues: $315 million expenditures: $796.5 million (2008 est.)

Industries: bauxite, gold, diamonds, iron; alumina refining; light manufacturing, and agricultural processing

Industrial production growth rate: 8% (2008 est.)

Electricity - production: 800 million kWh note: excludes electricity generated at interior mining sites (2006 est.)

Electricity - production by source:

Electricity - consumption: 744 million kWh (2006 est.)

Electricity - exports: 0 kWh (2007 est.)

Electricity - imports: 0 kWh (2007 est.)

Oil - production: 0 bbl/day (2007 est.)

Oil - consumption: 8,559 bbl/day (2006 est.)

Oil - exports: 0 bbl/day (2005)

Oil - imports: 8,811 bbl/day (2005)

Oil - proved reserves: 0 bbl (1 January 2006 est.)

Natural gas - production: 0 cu m (2007 est.)

Natural gas - consumption: 0 cu m (2007 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 0 cu m (1 January 2006 est.)

Agriculture - products: rice, coffee, pineapples, palm kernels, cassava (tapioca), bananas, sweet potatoes; cattle, sheep, goats; timber

Exports: $1.202 billion f.o.b. (2008 est.)

Exports - commodities: bauxite, alumina, gold, diamonds, coffee, fish, agricultural products

Exports - partners: Russia 10.8%, Ukraine 9.6%, Spain 8.8%, US 7.5%, Germany 7.4%, South Korea 7.2%, France 7%, Ireland 5.5%, China 5% (2007)

Imports: $1.392 billion f.o.b. (2008 est.)

Imports - commodities: petroleum products, metals, machinery, transport equipment, textiles, grain and other foodstuffs

Imports - partners: China 10%, France 7%, Netherlands 6.3% (2007)

Debt - external: $3.529 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: Guinean francs (GNF) per US dollar - 5,500 (2008 est.), 4,122.8 (2007), 5,350 (2006), 3,644.3 (2005), 2,225 (2004)

Fiscal year: