The Executive Board of the International Monetary Board (IMF) has completed the third review of Guinea’s performance under programmes supported by the Extended Credit Facility (ECF).
A report of the executive board on Monday in Abidjan said it also approved the immediate disbursement of 28.2 million dollars to Guinea.
According to the report, the latest approval brings the total disbursement to Guinea under the ECF arrangement to about 112.8 million dollars.
The report said that Guinea’s economy went through a difficult period in 2013 due to the fragile socio-political situation and a sharp slowdown in investment in the mining sector.
“As a result, growth is estimated to have slowed to 2.5 per cent, sharply below the programmed 4.5 per cent expansion. Inflation fell to 10.5 per cent at the end of 2013, international reserves were maintained at a satisfactory level, and the exchange rate remained broadly stable,’’ it said.
The report further said that Guinea’s performance under the ECF facility was satisfactory in spite of the shortfall in government revenue and increase in energy subsidy.
“Strong adjustment measures have kept the fiscal deficit on track. Guinea’s macro-economic prospects for 2014 remain positive. Real GDP growth has tendency to rebound to 4.5 per cent, also assuming a gradual acceleration of investment in the mining sector,’’ the report said.
It said that Inflation is projected to further decline to 8.5 per cent, adding that fiscal targets should include increase in public investment and external assistance.
It called on the authorities to focus structural reforms on public financial management, civil service reform, the mining sector, the business climate, agriculture and the electricity sector.