Guinea-Bissau: Fourth and Fifth Reviews Under the Extended Credit Facility Arrangement and Requests For Rephasing of Access, Waiver of Nonobservance of Performance Criteria, Modification of Performance Criteria, and Financing Assurances Review

This paper presents Guinea-Bissau’s Fourth and Fifth Reviews under the Extended Credit Facility Arrangement and Requests for Rephasing of Access, Waiver of Nonobservance of Performance Criteria, Modification of Performance Criteria, and Financing Assurances Review. Growth is projected to recover in 2024, but the external environment remains extremely challenging. Inflation is projected to be higher after the suspension of rice subsidies. The near-term policies are geared toward supporting the cashew export campaign, but the risks to the outlook remain tilted toward the downside. The successful implementation of the fiscal consolidation strategy is key to reduce vulnerabilities and bring down the high level of public debt. Mobilizing revenue is essential, particularly through the reduction of tax expenditures, improvements in tax administration and the broadening of the tax base. The government is firmly committed to implementing the policies underpinning the IMF supported program. The authorities’ near-term priority is to maintain fiscal discipline and accelerate structural reforms to strengthen institutions and improve governance.