The latest Guinea Economic Update offers a comprehensive overview of the country's macroeconomic situation, recent developments, and future outlook. The report highlights the robust GDP growth experienced between 2019 and 2023, averaging 5.1%, with an acceleration to 5.7% in 2024. This growth was driven by both mining and non-mining sectors, although inflation rose slightly to 5.1% due to a temporary fuel shortage following a depot explosion in December 2023.
Despite this economic growth, poverty remains a significant issue in Guinea. As of the last measurement, 52% of the population lived below the international poverty line of $3.65 per day (in 2017 PPP terms). From 2019 to 2024, the poverty rate increased by seven percentage points, adding approximately 1.8 million people to those living in poverty.
The report also discusses challenges related to domestic resource mobilization and management for inclusive and sustainable development. Tax revenues have averaged only 12.8% of GDP annually from 2016 to 2023, which is lower than regional peers and below the necessary threshold for supporting long-term growth.
To address these issues, Guinea has opportunities for improvement through reforms aimed at enhancing tax audit efficiency, improving taxpayer database integrity, ensuring timely tax filing and payment, and increasing digitalization within revenue administration.