Guinea Economy Profile 2009

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 more than 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 because of 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 (purchasing power parity)

$10.6 billion (2008 est.)
$10.14 billion (2007 est.)
$9.994 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$4.542 billion (2008 est.)

GDP - real growth rate

4.5% (2008 est.)
1.5% (2007 est.)
2.2% (2006 est.)

GDP - per capita (PPP)

$1,100 (2008 est.)
$1,100 (2007 est.)
$1,100 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 23.2%
industry: 39.5%
services: 37.3% (2008 est.)

Population below poverty line

47% (2006 est.)

Labor force

4.392 million (2007 est.)

Labor force - by occupation

agriculture: 76%
industry and services: 24% (2006 est.)

Unemployment rate

NA%

Household income or consumption by percentage share

lowest 10%: 1.9%
highest 10%: 41% (2006)

Distribution of family income - Gini index

38.1 (2006)
40.3 (1994)

Investment (gross fixed)

12.3% of GDP (2008 est.)

Budget

revenues: $769.7 million
expenditures: $837.7 million (2008 est.)

Inflation rate (consumer prices)

15% (2008 est.)
23.4% (2007 est.)

Central bank discount rate

NA% (31 December 2008)
22.25% (31 December 2005)

Commercial bank prime lending rate

NA%

Stock of money

$NA (31 December 2008)
$309.8 million (31 December 2005)

Stock of quasi money

$NA

Stock of domestic credit

$422.1 million (31 December 2005)

Industries

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

Industrial production growth rate

7% (2008 est.)

Electricity - production

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

Electricity - production by source

fossil fuel: 45.5%
hydro: 54.5%
nuclear: 0%
other: 0% (2001)

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 - imports

8,811 bbl/day (2005)

Oil - exports

0 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.)

Current Account Balance

-$487 million (2008 est.)
-$463 million (2007 est.)

Agriculture - products

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

Exports

$1.392 billion (2008 est.)
$1.203 billion (2007 est.)

Exports - commodities

bauxite, alumina, gold, diamonds, coffee, fish, agricultural products

Exports - partners

Spain 11.6%, Russia 11%, Ukraine 9.7%, Germany 7.7%, South Korea 7.2%, US 6.7%, China 5.6%, Ireland 4.8%, France 4.8% (2008)

Imports

$1.388 billion (2008 est.)
$1.218 billion (2007 est.)

Imports - commodities

petroleum products, metals, machinery, transport equipment, textiles, grain and other foodstuffs

Imports - partners

China 10.3%, France 7.8%, Netherlands 7.6% (2008)

Reserves of foreign exchange and gold

$93 million (31 December 2008 est.)
$86 million (31 December 2007 est.)

Debt - external

$3.527 billion (31 December 2008 est.)
$3.351 billion (31 December 2007 est.)

Market value of publicly traded shares

$NA

Economic aid - recipient

$182.1 million (2005)

Currency (code)

GNF

Currency (code)

Guinean franc (GNF)

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

calendar year