Guinea: 2022 Article IV Consultation and Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Guinea

International Monetary Fund

No 2023/043, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper focuses on Guinea’s 2022 Article IV Consultation and Request for Disbursement under the Rapid Credit Facility (RCF). Guinea’s chronic food insecurity was significantly exacerbated in 2022 as a result of the international food and fertilizer price shock, threatening the fragile post-pandemic recovery of the nonmining sector. Emergency financial assistance under the RCF’s new Food Shock Window would help address urgent balance-of-payments needs and mitigate the impact of the food shock. Guinea remains at moderate risk of debt distress, with some space to absorb shocks but limited space for new borrowing. Maximizing the concessionality of new debt, tapping domestic financing sources, strengthening debt management capacity, and enhancing public investment management will be crucial in preserving medium-term debt sustainability. Economic diversification will be essential to sustain growth over time and make it more resilient and inclusive. A sound implementation of the Simandou iron ore project should be a key priority, while addressing weaknesses in governance will also be important.

Keywords: price shock; oil price hike; IMF budget support; money market rate; FX auction; fertilizer price; Mining sector; Inflation; Food security; Global; Africa; West Africa (search for similar items in EconPapers)
Pages: 119
Date: 2023-01-24
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