Agriculture is pivotal for Guinea's structural transformation and climate resilience, serving as a cornerstone for inclusive growth and a sustainable future.
Conakry, September 19, 2024 - The first annual Guinea Economic Update presents an overview analysis of Guinea's macroeconomic landscape and delves into the pivotal role of agriculture in the country's climate resilience and structural transformation.
The report, "Natural Resource Management for Development," presents a dual focus: an assessment of recent economic developments, and a forward-looking perspective on the agricultural sector's potential to drive inclusive growth in the context of climate change challenges.
The first part of the report highlights Guinea's macroeconomic performance, comprising a robust growth rate of 7.1% in 2023, spurred by a 22% surge in bauxite production and a 10% increase in gold exports. This growth, however, contrasts with minimal job creation and poverty reduction, a result of the mining sector's weak integration in the domestic economy.
"In a year of global economic challenges, Guinea has demonstrated resilience and growth, primarily driven by its mining sector. Yet, the real test remains to translate this growth into tangible benefits for all Guineans," said Christina A. Wood, World Bank Group Senior Economist on Macroeconomic, Trade and Investment for West Africa Region, and author of the report.
The report also sheds light on Guinea's prudent fiscal management, which has maintained low deficits and contributed to macroeconomic stability. Despite these efforts, the need for enhanced revenue mobilization and expenditure optimization is evident to maximize economic growth.
The second part of the report underscores the critical importance of agriculture in Guinea's economy, contributing 27.8% to the national GDP and employing over half of the population. The report argues that transforming agriculture from subsistence to productivity-driven practices is essential for boosting competitiveness, climate resilience, and food security.
The analysis also emphasizes the need for policy reforms and investments in vulnerable sectors, advocating for the adoption of climate-resilient agricultural production practices, and the reduction of post-harvest losses.
"This comprehensive annual report is a clarion call for action, highlighting the urgent need for strategic investments in the agricultural sector to ensure it becomes a catalyst for economic transformation and fosters growth that is not only inclusive but also harmonious with the environment, ensuring a prosperous future for Guinean generations to come," added Issa Diaw, World Bank Group Country Manager for Guinea.
As Guinea stands on the cusp of potentially significant transformation, it is essential to lay the groundwork for informed decision-making and sustainable development.
Download the Guinea Economic Update in English
