Economy of Guinea
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Guinea is richly endowed with minerals, possessing an estimated one-third of the world's proven reserves of bauxite, more than 1.8 billion metric tons of high-grade iron ore, significant diamond and gold deposits, and undetermined quantities of uranium. Guinea also has considerable potential for growth in the agricultural and fishing sectors. Land, water, and climatic conditions provide opportunities for large-scale irrigated farming and agroindustry.Remittances from Guineans living and working abroad and coffee exports account for the rest of Guinea's foreign exchange.
Current GDP per capita of Guinea shrank by 16% in the Nineties.
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[edit] History
Since 1985, the Guinean Government has adopted policies to return commercial activity to the private sector, promote investment, reduce the role of the state in the economy, and improve the administrative and judicial framework. The government has eliminated restrictions on agricultural enterprise and foreign trade, liquidated many parastatals, increased spending on education, and vastly downsized the civil service. The government also has made major strides in restructuring the public finances.
The IMF and the World Bank are heavily involved in the development of Guinea's economy, as are many bilateral donor nations, including the United States. Guinea's economic reforms have had recent notable success, improving the rate of economic to 5% and reducing the rate of inflation to about 2%, as well as increasing government revenues while restraining official expenditures. Although Guinea's external debt burden remains high, the country is now current on external debt payments.
The government revised the private investment code in 1998 to stimulate economic activity in the spirit of a free enterprise. The code does not discriminate between foreigners and nationals and provides for repatriation of profits. Foreign investments outside Conakry are entitled to especially favorable conditions. A national investment commission has been formed to review all investment proposals. The United States and Guinea have signed an investment guarantee agreement that offers political risk insurance to American investors through OPIC. Guinea plans to inaugurate an arbitration court system to allow for the quick resolution of commercial disputes.
Average wages in 2007 hover around $2-3 per day.
[edit] Mining
Bauxite mining and alumina production provide about 80% of Guinea's foreign exchange. Several U.S. companies are active in this sector. Diamonds and gold also are mined and exported on a large scale, providing additional foreign exchange. Concession agreements have been signed for future exploitation of Guinea's extensive iron ore deposits.
Guinea is richly endowed with minerals, possessing an estimated one-third of the world's proven reserves of bauxite, more than 1.8 billion metric tons (MT) of high-grade iron ore, significant diamond and gold deposits, and undetermined quantities of uranium.
Lately, with the increase of alumina demand thanks to booming mainland China, there is a renew interest in Guinea riches. The consortium Alcan and Alcoa, partner with the Guinean government in the CBG mining in north western Guinea, have announced the feasibility study for the construction of a 1 million TPa alumina smelter. This come with a similar project from Canadian start-up Global Alumina trying to come with 2 billions dollars alumina plant in the same region. As of April 2005, the National Assembly of Guinea has not ratified Global's project.
[edit] Agriculture
Guinea also has considerable potential for growth in the agricultural and fishing sectors. Land, water, and climatic conditions provide opportunities for large-scale irrigated farming and agroindustry. Possibilities for investment and commercial activities exist in all these areas, but Guinea's poorly developed infrastructure continues to present obstacles to investment projects.
GDP: purchasing power parity - $19.5 billion (2004 est.)
GDP - real growth rate: 1% (2004 est.)
GDP - per capita: purchasing power parity - $2,100 (2004 est.)
GDP - composition by sector:
agriculture: 25%
industry: 38.2%
services: 36.8% (2004 est.)
Population below poverty line: 40% (2002 est.)
Household income or consumption by percentage share:
lowest 10%: 2.6% (1994)
highest 10%: 32% (1994)
Inflation rate (consumer prices): 18% (2004 est.)
Labor force: 3 million (1999)
Labor force - by occupation: agriculture 80%, industry and services 20% (2000 est.)
Unemployment rate: NA%
Budget:
revenues: $382.7 million
expenditures: $711.4 million, including capital expenditures of NA (2004 est.)
Industries: bauxite, gold, diamonds; alumina refining; light manufacturing and agricultural processing industries
Industrial production growth rate: 3.2% (1994)
Electricity - production: 855 GWh (2002)
Electricity - production by source:
fossil fuel: 63.55%
hydro: 36.45%
nuclear: 0%
other: 0% (1998)
Electricity - consumption: 795.2 GWh (1998)
Electricity - exports: 0 kWh (1998)
Electricity - imports: 0 kWh (1998)
Agriculture - products: rice, coffee, pineapples, palm kernels, cassava (tapioca), bananas, sweet potatoes; cattle, sheep, goats; timber
Exports: $709.2 million f.o.b. (2004 est.)
Exports - commodities: bauxite, alumina, gold, diamonds, coffee, fish, agricultural products
Exports - partners: South Korea 15.6%, Russia 13.1%, Spain 12.3%, Ireland 9.1%, United States 7.5%, Ukraine 5.6%, Belgium 5.2% (2004)
Imports: $641.5 million f.o.b. (2004 est.)
Imports - commodities: petroleum products, metals, machinery, transport equipment, textiles, grain and other foodstuffs (1997)
Imports - partners: Côte d'Ivoire 15.5%, France 9%, Belgium 6.1%, the People's Republic of China 6%, South Africa (2004)
Debt - external: $3.25 billion (2001 est.)
Economic aid - recipient: $359.2 million (1998)
Currency: 1 Guinean franc (GNF) = 100 centimes
Exchange rates: Guinean francs per US dollar - 2,550 (2004), 1,984.9 (2003), 1,975.8 (2002), 1,950.6 (2001), 1,746.9 (2000), 1,292.5 (January 1999), 1,236.8 (1998), 1,095.3 (1997), 1,004.0 (1996), 991.4 (1995)
Fiscal year: calendar year
Fiscal year:
[edit] External links
- Economy of Guinea at the Open Directory Project
- Economic Community of West African States (ECOWAS)
- Guinea economic analysis
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