Guinea: 2024 Article IV Consultation and Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Guinea

The 2024 Article IV Consultation with Guinea discusses that in part because of the explosion, growth is expected to decelerate to 4.1 percent in 2024 and rebound to 5.6 percent in 2025, sustained by a resilient mining sector. Key priorities for 2024 aim at addressing urgent financing needs mainly linked to assistance to affected households, site cleaning, and decontamination and reconstruction, which could threaten growth and economic development if not addressed. In the medium term, mobilizing domestic revenues, modernizing tax administration, improving public finance management and investment efficiency, and increasing spending on education, health, and social protection will help boost productivity and reduce poverty. The implementation of structural reforms will help manage Guinea’s vulnerability to domestic and external shocks and achieve sustained and inclusive growth. Policies should focus on beefing up fiscal space for priority spending and fiscal sustainability. In particular, mobilizing domestic revenues, especially from the mining sector, modernizing tax administration, improving public finance management and investment efficiency, as well as increasing spending on education, health, and social protection, while anchoring spending on available resources will help boost productivity, diversify the economy, and reduce poverty.