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Quick Facts
- Population:
- GDP (PPP):
- $39.9 billion
- 6.6% 5-year compound annual growth
- $2,789 per capita
- Unemployment:
- Inflation (CPI):
- FDI Inflow:
- Public Debt:
Guinea’s economic freedom score is 53.2, making its economy the 129th freest in the 2023 Index. Its score is 1.0 point lower than last year. Guinea is ranked 25th out of 47 countries in the Sub-Saharan Africa region, and its overall score is below the world average.
Instability and weak rule of law continue to constrain economic development in Guinea. Marginal enforcement of property rights and high levels of corruption have driven many people into the informal sector. The judicial system is weak and vulnerable to political interference. Economic growth remains fragile. State-controlled enterprises dominate key sectors.
Background
In 2010, Alpha Condé won Guinea’s first presidential election since independence from France in 1958, but the election was marred by irregularities and violence. Condé easily won a second term in 2015 after the opposition boycotted the elections. In 2020, a constitutional referendum enabled him to seek a third term, which he won in October elections that were followed by violence and the arrests of opposition leaders. A coup ousted Condé in September 2021, and the regional body ECOWAS suspended Guinea’s membership. Despite huge bauxite reserves and large deposits of iron ore, gold, and diamonds, many Guineans live in poverty.
Rule of Law
The overall rule of law is weak in Guinea. The country’s property rights score is below the world average; its judicial effectiveness score is below the world average; and its government integrity score is below the world average.
Government Size
The top individual and corporate tax rates are, respectively, 40 percent and 35 percent. The tax burden equals 12.8 percent of GDP. Three-year government spending and budget balance averages are, respectively, 15.8 percent and –1.7 percent of GDP. Public debt equals 42.5 percent of GDP.
Regulatory Efficiency
Underdevelopment and the “resource curse,” combined with a long history of undemocratic government, have undermined economic development and business freedom. The labor market suffers from a lack of workers with specialized skills. The most recent available inflation rate is 12.6 percent.
Open Markets
The trade-weighted average tariff rate is 12.8 percent, and nontariff barriers prevent more dynamic trade from taking place. The inefficient regulatory system impedes foreign investment. The underdeveloped financial sector continues to provide a very limited range of services.