Editing Economy of Guinea-Bissau (section)

== Present day ==
{{See also|Tourism in Guinea-Bissau}}
===Macro-economic trend===

Following the April 2012 coup d'État growth plunged to reach -1.5% of GDP. In 2013, the country's GDP grew only by 0.9%. This low growth level during a period of democratic transition is explained by a combination of low administrative efficiency, low investments on account of the political instability and a bad cashew export season.<ref name=":1" /> Key macroeconomic indicators estimated by the [[African Development Bank]] are presented in the chart below:
{| class="wikitable"
!Real GDP growth
!2013
!2014 (estimate)
!2015 (projection)
!2016 (projection)
|-
|Real GDP per capita growth
|0.9
|2.6
|3.9
|3.7
|-
|Real GDP per capita growth
| -1.5
|0.2
|1.6
|1.3
|-
|Budget balance % GDP
| -1.4
| -2.1
| -3.9
| -3.4
|-
|Current account balance % GDP
| -4.1
| -0.5
| -0.8
| -1.2
|}
Intermittent fighting between [[Senegal]]ese-backed government troops and a military junta destroyed much of the country's [[infrastructure]] and caused widespread damage to the economy in 1998; the civil war led to a 28% drop in GDP that year, with partial recovery in 1999.  Agricultural production is estimated to have fallen by 17% during the conflict. Cashew nut output, the main export crop, declined in 1998 by an estimated 30%. World cashew prices dropped by more than 50% in 2000, compounding the economic devastation caused by the conflict.

Before the war, trade reform and price liberalization were the most successful part of the country's [[structural adjustment]] program under IMF sponsorship. The tightening of monetary policy and the development of the private sector had also begun to reinvigorate the economy. Under the government's post-conflict economic and financial program, implemented with IMF and World Bank input, real GDP recovered in 1999 by almost 8%. In December 2000 Guinea-Bissau qualified for almost $800 million in debt-service relief under the first phase of the enhanced [[Heavily Indebted Poor Countries|HIPC]] initiative and is scheduled to submit its Poverty Reduction Strategy Paper in March 2002. Guinea-Bissau will receive the bulk of its assistance under the enhanced HIPC initiative when it satisfies a number of conditions, including implementation of its Poverty Reduction Strategy Paper.

Because of high costs, the development of [[petroleum]], [[phosphate]], and other [[mineral]] resources is not a near-term prospect. The country produces 400,000 barrels/day of petrol.

Mean wages were $0.52 per [[man-hour]] in 2009. In 2019 the minimal monthly wage was around 35000 CFA = US$60.

The following table shows the main economic indicators in 1980–2017.<ref>{{cite web|title=Report for Selected Countries and Subjects|url=https://www.imf.org/external/pubs/ft/weo/2018/01/weodata/weorept.aspx?pr.x=49&pr.y=16&sy=1980&ey=2023&scsm=1&ssd=1&sort=country&ds=.&br=1&c=654&s=NGDP_RPCH,PPPGDP,PPPPC,PCPIPCH,GGXWDG_NGDP&grp=0&a=|access-date=2018-09-09|language=en-US}}</ref>
{| class="wikitable" style="text-align:center; vertical-align:middle;"
|- style="font-weight:bold;"
! Year
! GDP
(in bil. US$ PPP)
! GDP per capita
(in US$ PPP)
!GDP
(in bil. US$ nominal)
! GDP growth<br />(real)
! Inflation<br />(in Percent)
! Government debt<br />(Percentage of GDP)
|-
| style="font-weight:bold;" | 1980
| 0.44
| 562
|0.29
| 4.9 %
| 65.8 %
| ...
|-
| style="font-weight:bold;" | 1985
| 0.62
| 719
|0.49
| 4.3 %
| 112.7 %
| ...
|-
| style="font-weight:bold;" | 1990
| 0.84
| 872
|0.55
| 4.6 %
| 33.0 %
| ...
|-
| style="font-weight:bold;" | 1995
| 1.14
| 1,066
|0.78
| 4.0 %
| 45.1 %
| ...
|-
| style="font-weight:bold;" | 2000
| 1.37
| 1,150
|0.39
| 9.0 %
| 8.6 %
| 234 %
|-
| style="font-weight:bold;" | 2005
| 1.65
| 1,242
|0.64
| 7.1 %
| 3.4 %
| 222 %
|-
| style="font-weight:bold;" | 2006
| 1.73
| 1,279
|0.64
| 2.0 %
| 2.0 %
| 204 %
|-
| style="font-weight:bold;" | 2007
| 1.84
| 1,327
|0.75
| 3.3 %
| 4.6 %
| 177 %
|-
| style="font-weight:bold;" | 2008
| 1.94
| 1,366
|0.95
| 3.2 %
| 10.4 %
| 163 %
|-
| style="font-weight:bold;" | 2009
| 2.02
| 1,391
|0.89
| 3.4 %
| −1.6 %
| 159 %
|-
| style="font-weight:bold;" | 2010
| 2.14
| 1,461
|0.94
| 4.6 %
| 1.0 %
| 68 %
|-
| style="font-weight:bold;" | 2011
| 2.36
| 1,578
|1.16
| 8.0 %
| 5.0 %
| 50 %
|-
| style="font-weight:bold;" | 2012
| 2.36
| 1,546
|1.05
| −1.7 %
| 2.1 %
| 53 %
|-
| style="font-weight:bold;" | 2013
| 2.47
| 1,586
|1.11
| 3.3 %
| 0.8 %
| 54 %
|-
| style="font-weight:bold;" | 2014
| 2.54
| 1,596
|1.14
| 1.0 %
| −1.0 %
| 55 %
|-
| style="font-weight:bold;" | 2015
| 2.73
| 1,675
|1.15
| 6.1 %
| 1.5 %
| 50 %
|-
| style="font-weight:bold;" | 2016
| 2.92
| 1,755
|1.25
| 5.8 %
| 1.5 %
| 49 %
|-
| style="font-weight:bold;" | 2017
| 3.14
| 1,845
|1.47
| 5.5 %
| 1.1 %
| 42 %
|}

=== Financial sector ===
The financial sector of Guinea-Bissau is relatively underdeveloped: in 2013, financial intermediation accounted for 4% of GDP,<ref name=":1">{{Cite web|url =http://www.africaneconomicoutlook.org/fileadmin/uploads/aeo/2015/CN_data/Cn_Long_FR/Guinee-Bissau_2015.pdf|title =African Economic Outlook 2015: Guinea-Bissau|access-date =20 January 2016|url-status =dead|archive-url =https://web.archive.org/web/20150919110503/http://www.africaneconomicoutlook.org/fileadmin/uploads/aeo/2015/CN_data/Cn_Long_FR/Guinee-Bissau_2015.pdf|archive-date =19 September 2015}}</ref> banking penetration is below 1% of the population (IMF 2013. Article IV Consultations – Guinea-Bissau, IMF Country Report No 13/197) and access to finance is cited as the second most important constraint for businesses.<ref name=":0">{{Cite web|url = http://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operations/West_Africa_Policy_Note_-_Providing_Efficient_Banking_Services_in_a_Fragile_Environment.pdf|title = Providing Efficient Banking Services in a Fragile Environment: Structure, Performance and Perspectives of the Banking Sector in Guinea-Bissau|access-date = 20 January 2016|publisher = African Development Bank|last = Arvanitis|first = Yannis}}</ref> As of 2015, only four banks were operating in the country. According to the IMF, regional private foreign banks held about 65% of shares in the Bissau-Guinean banking system (IMF 2013). Banks are regulated by the [[WAEMU]] authorities. In the aftermath of the civil war (1998/1999), private sector credit had fallen below 1% of GDP. In 2003 the balance sheets of banks amounted to EUR 21.3 million. Since then credit to the economy has risen to nearly 13.8% of GDP.<ref name=":0" />

=== "Terra Ranka" (A fresh start): a new economic plan ===
On March 25, 2015, the Government of Guinea-Bissau convened an international donor conference in Brussels.<ref>{{Cite web|title = Tera Ranka - Accueil|url = http://www.teraranka.gov.gw/|website = www.teraranka.gov.gw|access-date = 2016-01-28|archive-url = https://web.archive.org/web/20160206054832/http://www.teraranka.gov.gw/|archive-date = 2016-02-06|url-status = dead}}</ref> Hosted by the European Union with support from the UNDP and other partners including the African Development Bank and the World Bank, the country's major partners joined in welcoming the country's new vision up to 2025, and to put pledges forth for its strategic and operational plan dubbed "Terra Ranka" (A fresh start).<ref name=":2">{{Cite web|title = Union européenne - SEAE (Service européen pour l'action extérieure) {{!}} Terra Ranka: un nouveau départ pour la Guinée-Bissau|url = http://eeas.europa.eu/top_stories/2015/300315_terra-ranka_guinea-bissau_fr.htm|website = eeas.europa.eu|access-date = 2016-01-28}}</ref> Pledges totalled EUR 1.3 billion.<ref name=":2" />

The strategic and operational plan is composed of six pillars: (i) peace and governance, (ii) infrastructure, (iii) industrialisation, (iv) urban development, (v) human development and (vi) biodiversity. Each of the pillars is composed of a series of structuring projects to be financed either through direct donor support or through the mobilisation of private funding.<ref>{{Cite journal|url = http://www.afdb.org/fileadmin/uploads/afdb/Documents/Knowledge/West_Africa_Policy_Note_-_Note_04__Dec_2015-Guin%C3%A9e-Bissau.pdf|title = Developing Public-Private Partnerships in Guinea-Bissau: Getting the Policy Framework Right|last = Arvanitis|first = Yannis|date = December 2015|journal = African Development Bank: West Africa Policy Notes|access-date = 2016-01-28}}</ref>