Economy of Guinea


Economy of Guinea

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.

[http://earthtrends.wri.org/text/economics-business/variable-638.html Current GDP per capita] of Guinea shrank by 16% in the Nineties.

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.

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.

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:

External links

*dmoz|Regional/Africa/Guinea/Business_and_Economy/Economic_Development
* [http://www.eia.doe.gov/emeu/cabs/ghana.html Economic Community of West African States (ECOWAS)]
* [http://www.guinea.aha.ru/ Guinea economic analysis] .
* [http://www.resimao.org West African Agricultural Market Observer/Observatoire du Marché Agricole (RESIMAO)] , a project of the West-African Market Information Network (WAMIS-NET), provides live market and commodity prices from fifty seven regional and local public agricultural markets across Benin, Burkina Faso, Côte d'Ivoire, Guinea, Niger, Mali, Senegal, Togo, and Nigeria. Sixty commodities are tracked weekly. The project is run by the Benin Ministry of Agriculture, and a number of European, African, and United Nations agencies.


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Economy of Guinea-Bissau — Guinea Bissau is among the world s least developed nations and one of the 10 poorest countries in the world, and depends mainly on agriculture and fishing. Cashew crops have increased remarkably in recent years, and the country now ranks sixth in …   Wikipedia

  • Guinea-Bissau — /gin ee bi sow /, n. a republic on the W coast of Africa, between Guinea and Senegal: formerly a Portuguese overseas province; gained independence in 1974. 1,178,584; 13,948 sq. mi. (36,125 sq. km). Cap.: Bissau. Formerly, Portuguese Guinea. * *… …   Universalium

  • Guinea — Guinean, adj., n. /gin ee/, n. 1. a coastal region in W Africa, extending from the Gambia River to the Gabon estuary. 2. Formerly, French Guinea. an independent republic in W Africa, on the Atlantic coast. 7,405,375; ab. 96,900 sq. mi. (251,000… …   Universalium

  • Guinea — <p></p> <p></p> Introduction ::Guinea <p></p> Background: <p></p> Guinea has had a history of authoritarian rule since gaining its independence from France in 1958. Lansana CONTE came to power in… …   The World Factbook

  • Guinea-Bissau peso — Infobox Currency currency name in local = peso da Guiné Bissau pt icon image 1 = image title 1 = iso code = using countries = Guinea Bissau inflation rate = inflation source date = subunit ratio 1 = 1/100 subunit name 1 = centavos symbol = used… …   Wikipedia

  • Economy of Morocco — 100 Moroccan dirham Rank 54th Currency Moroccan Dirham (MAD) …   Wikipedia

  • Economy of New Zealand — Rank 60th Currency 1 New Zealand Dollar (NZD$) = 100 cents Fiscal year 1 April – 31 March Trade organisations APEC, WTO and OECD …   Wikipedia

  • Economy of Nigeria — Currency Nigerian naira (N) (NGN) Trade organisations OPEC Statistics GDP $377.6 billion (2010 est.) (PPP; 31st) …   Wikipedia

  • Economy of Kenya — Rank 86th Currency Kenyan shilling (KES) Trade organizations CEN SAD, COMESA, EAC, WTO and others Sta …   Wikipedia

  • Economy of Namibia — Rank 131st Currency Namibian dollar (NAD) Fiscal year 1 April 31 March Trade organisations WTO, SADC, SACU …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.