Guinea-Bissau is a small, developing country located in West Africa. It is bordered by Senegal to the north and Guinea to the south and east. The country has a population of about 1.8 million people and a land area of 36,125 square kilometers. It is one of the poorest countries in the world, with a Gross Domestic Product (GDP) per capita of only $1,082 in 2017. Despite its small size and limited resources, Guinea-Bissau has a diverse economy that is heavily dependent on agriculture and fishing.
Agriculture is the main source of income for most of the population, accounting for about 40% of GDP and employing around 80% of the workforce. The main crops are rice, cassava, maize, sorghum, millet, and sweet potatoes. Fishing is also important, with a wide variety of fish and shellfish caught in the coastal waters.
The economy of Guinea-Bissau is heavily reliant on foreign aid and remittances from the diaspora. In 2017, the country received $179 million in foreign aid, which accounted for about 15% of GDP. Remittances from the diaspora accounted for an additional 4.5% of GDP.
The government of Guinea-Bissau has been working to diversify the economy and reduce its dependence on foreign aid and remittances. The country has significant potential for growth in the tourism sector, with its beautiful beaches and unique wildlife. Other potential areas of growth include agriculture, fisheries, and renewable energy.
The government has also taken steps to improve the business climate in the country. It has implemented reforms to reduce bureaucracy and improve the ease of doing business. It has also taken steps to improve access to finance, including the establishment of a credit guarantee fund.
Despite these efforts, Guinea-Bissau’s economy remains fragile and vulnerable to external shocks. The country is highly dependent on foreign aid and remittances, and the economy is vulnerable to fluctuations in the price of commodities such as rice and fish. In addition, the country is prone to political instability, which can have a negative impact on the economy.
Despite these challenges, Guinea-Bissau has the potential to become a successful, self-sustaining economy. With the right policies and investments, the country can develop its agriculture, fisheries, and tourism sectors and reduce its dependence on foreign aid and remittances. This will help to create jobs and reduce poverty, and ultimately create a more prosperous and stable economy.