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Economy of Guinea:
Guinea is richly endowed with minerals, possessing an estimated one-third
of the world's proven reserves of bauxite, more than 1.8 billion metric
tons of high-grade iron ore, significant diamond and gold deposits, and
undetermined quantities of uranium. Guinea also has considerable potential
for growth in the agricultural and fishing sectors. Land, water, and climatic
conditions provide opportunities for large-scale irrigated farming and
agroindustry.
Current GDP per capita of Guinea shrank by 16% in the Nineties.
Bauxite mining and alumina production provide about 80% of Guinea's foreign
exchange. Several U.S. companies are active in this sector. Diamonds and
gold also are mined and exported on a large scale, providing additional
foreign exchange. Concession agreements have been signed for future exploitation
of Guinea's extensive iron ore deposits. Remittances from Guineans living
and working abroad and coffee exports account for the rest of Guinea's
foreign exchange.
Since 1985, the Guinean Government has adopted policies to return commercial
activity to the private sector, promote investment, reduce the role of
the state in the economy, and improve the administrative and judicial
framework. The government has eliminated restrictions on agricultural
enterprise and foreign trade, liquidated many parastatals, increased spending
on education, and vastly downsized the civil service. The government also
has made major strides in restructuring the public finances. The IMF and
the World Bank are heavily involved in the development of Guinea's economy,
as are many bilateral donor nations, including the United States. Guinea's
economic reforms have had recent notable success, improving the rate of
economic to 5% and reducing the rate of inflation to about 2%, as well
as increasing government revenues while restraining official expenditures.
Although Guinea's external debt burden remains high, the country is now
current on external debt payments.
The government revised the private investment code in 1998 to stimulate
economic activity in the spirit of a free enterprise. The code does not
discriminate between foreigners and nationals and provides for repatriation
of profits. Foreign investments outside Conakry are entitled to especially
favorable conditions. A national investment commission has been formed
to review all investment proposals. The United States and Guinea have
signed an investment guarantee agreement that offers political risk insurance
to American investors through OPIC. Guinea plans to inaugurate an arbitration
court system to allow for the quick resolution of commercial disputes.
Guinea is richly endowed with minerals, possessing an estimated one-third
of the world's proven reserves of bauxite, more than 1.8 billion metric
tons (MT) of high-grade iron ore, significant diamond and gold deposits,
and undetermined quantities of uranium. Guinea also has considerable potential
for growth in the agricultural and fishing sectors. Land, water, and climatic
conditions provide opportunities for large-scale irrigated farming and
agroindustry. Possibilities for investment and commercial activities exist
in all these areas, but Guinea's poorly developed infrastructure continues
to present obstacles to investment projects.
Lately, with the increase of alumina demand thanks to booming China, there
is a renew interest in Guinea riches. The consortium Alcan and Alcoa,
partener with the Guinean government in the CBG mining in north western
Guinea, have announced the feasibility study for the construction of a
1 million tpa alumina smelter. This come with a similar project from Canadian
start-up Global Alumina trying to come with 2 billions dollars alumina
plant in the same region. As of April 2005, the National Assembly of Guinea
has not ratified Global's project.
GDP: purchasing power parity - $19.5 billion (2004 est.)
GDP - real growth rate: 1% (2004 est.)
GDP - per capita: purchasing power parity - $2,100 (2004 est.)
GDP - composition by sector:
agriculture: 25%
industry: 38.2%
services: 36.8% (2004 est.)
Population below poverty line: 40% (2002 est.)
Household income or consumption by percentage share:
lowest 10%: 2.6% (1994)
highest 10%: 32% (1994)
Inflation rate (consumer prices): 18% (2004 est.)
Labor force: 3 million (1999)
Labor force - by occupation: agriculture 80%, industry and services 20%
(2000 est.)
Unemployment rate: NA%
Budget:
revenues: $382.7 million
expenditures: $711.4 million, including capital expenditures of NA (2004
est.)
Industries: bauxite, gold, diamonds; alumina refining; light manufacturing
and agricultural processing industries
Industrial production growth rate: 3.2% (1994)
Electricity - production: 855 GWh (2002)
Electricity - production by source:
fossil fuel: 63.55%
hydro: 36.45%
nuclear: 0%
other: 0% (1998)
Electricity - consumption: 795.2 GWh (1998)
Electricity - exports: 0 kWh (1998)
Electricity - imports: 0 kWh (1998)
Agriculture - products: rice, coffee, pineapples, palm kernels, cassava
(tapioca), bananas, sweet potatoes; cattle, sheep, goats; timber
Exports: $709.2 million f.o.b. (2004 est.)
Exports - commodities: bauxite, alumina, gold, diamonds, coffee, fish,
agricultural products
Exports - partners: South Korea 15.6%, Russia 13.1%, Spain 12.3%, Ireland
9.1%, United States 7.5%, Ukraine 5.6%, Belgium 5.2% (2004)
Imports: $641.5 million f.o.b. (2004 est.)
Imports - commodities: petroleum products, metals, machinery, transport
equipment, textiles, grain and other foodstuffs (1997)
Imports - partners: Côte d'Ivoire 15.5%, France 9%, Belgium 6.1%,
China 6%, South Africa (2004)
Debt - external: $3.25 billion (2001 est.)
Economic aid - recipient: $359.2 million (1998)
Currency: 1 Guinean franc (GNF) = 100 centimes
Exchange rates: Guinean francs per US dollar - 2,550 (2004), 1,984.9 (2003),
1,975.8 (2002), 1,950.6 (2001), 1,746.9 (2000), 1,292.5 (January 1999),
1,236.8 (1998), 1,095.3 (1997), 1,004.0 (1996), 991.4 (1995)
Fiscal year: calendar year
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