Guinea-Bissau: low cashew production to reduce economic growth to 3.8% in 2018
(Ecofin Agency) - This year, Guinea-Bissau’s economy which stabilized around 6% between 2015 and 2017 will drop to 3.8 %, due to the decrease of cashew nut production in the country. This was revealed by IMF after a mission conducted from September 19 to October 2 in the country.
According to the fund, lower cashew nut exports should contribute to the rise of the 2018 budget deficit that should represent 3.6% of GDP against 1.9% estimated in 2017.
The IMF reveals that Guinea-Bissau’s economy is one of the least diversified in the world. Indeed, cashew represents 90% of the exports and 10% of GDP. Furthermore, the sector is heavily taxed from harvest to exports. In 2017, the country exported 175,000 tons of cashew nuts.