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Guinea Explosion Response Efforts Focus on Assistance to Affected Households, Cleaning and Reconstruction

The International Monetary Fund (IMF) has emphasized the urgent need for assistance to affected households, cleaning and reconstruction efforts following a recent explosion in Guinea.

Urgent Need for Assistance

In its latest report, the IMF highlighted the importance of transparent use of resources under the Rapid Credit Facility (RCF) to ensure that aid reaches those most in need. The RCF is designed to provide rapid financial support to countries facing sudden, unexpected crises.

  • Transparency and Accountability: The IMF stresses the need for transparency and accountability in the use of resources, ensuring that aid reaches those most affected.
  • Rapid Financial Support: The RCF provides rapid financial support to countries facing sudden, unexpected crises.

Recommendations

The IMF also recommended that Guinea’s authorities take steps to address structural vulnerabilities and foster inclusive growth. This includes:

  • Strengthening Governance: Strengthening governance and combating corruption are key to fostering inclusive growth.
  • Implementing Transparency Measures: Implementing transparency measures for the use of resources under the RCF is essential.
  • Domestic Revenue Mobilization: Domestic revenue mobilization is necessary to create fiscal space for priority spending while preserving debt sustainability over the medium term.

Response Efforts

To respond to the explosion, the IMF agreed that a temporary relaxation of the fiscal stance is warranted. The IMF spokesperson emphasized:

“We are working closely with Guinea’s authorities to provide critical support and assistance in response to this devastating crisis.”

Commitment to Reform

The IMF has also welcomed Guinea’s commitment to address transfer mispricing and reduce tax exemptions in the mining sector, as well as efforts to reform fuel and electricity subsidies and strengthen management of state-owned enterprises.

  • Structural Reforms: The IMF highlights the need for structural reforms to foster inclusive growth, including strengthening governance, combating corruption, and addressing climate vulnerabilities and gender gaps.
  • Inclusive Growth: Guinea’s commitment to address these issues is crucial for fostering inclusive growth.

Economic Indicators

Here are some key economic and financial indicators:

Real GDP Growth (annual percentage change): 5.6% in 2021, projected to reach 4.1% in 2023 Current Account Balance (excluding official transfers): -2.5% of GDP in 2021, projected to reach -10.7% of GDP in 2023 Gross Public Debt: 42.4% of GDP in 2021, projected to decrease to 37.9% of GDP by 2024

Contact Information

For more information, please contact:

Tatiana Mossot, Press Officer, IMF Communications Department Phone: +1 202 623-7100 Email: MEDIA@IMF.org Twitter: @IMFSpokesperson