The International Monetary Fund (IMF) told Lusa in Marrakech this Sunday that containing current spending, limiting fiscal transfers and increasing revenues is essential for Guinea-Bissau to guarantee fiscal stability.
“Increasing domestic revenues and endowments, reining in current spending and limiting fiscal transfers will be fundamental to ensuring fiscal sustainability,” economist Thibault Lamaire told Lusa on the sidelines of the IMF-Banking World Cup held this year. week in Marrakech, Morocco.
The Africa Department economist and one of the authors of the Regional Economic Outlook for Sub-Saharan Africa report highlighted that “economic activity is expected to decline to 4.2% this year, impacted by lower global prices and exports of cashew and adverse external shocks,” but stressed that it should recover slightly to 4.5% next year.
The IMF bases this forecast “on a positive cashew campaign, infrastructure projects and increased donor support.”
Despite this, Thibault Lamaire concludes, “the country continues to experience the negative impact of the war in Ukraine on fuel prices and important food products, with inflation expected to rise to 8% in 2023.”
Author: Lusa
Source: CM Jornal
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