World Bank2012-06-122012-06-122008-10https://hdl.handle.net/10986/7871Following a decade of relatively strong growth, Guinea's economic performance weakened beginning in 2000. During 1992-1999, growth averaged 4.4 percent a year as the Government implemented a program of economic reforms aimed at liberalizing its economy and improving the environment for private sector investment. With a tightening of financial policies over the 1990s, inflation reached single digits by the late 1990s and the fiscal deficit averaged just over 3 percent of Gross Domestic Product (GDP) in the second half of the 1990s. However, since 2000 growth slowed to an average of 2.8 percent a year and inflation increased to 39 by 2006. Guinea's worsening economic performance since 2000 reflects a weaker policy framework and exogenous shocks. Macroeconomic policies were relaxed, as fiscal policy was loosened and monetary policy became highly accommodative. Government revenues from the mining sector dropped, despite a recovery in the price of bauxite-Guinea's most important export. Also, a heightened level of regional insecurity and a resulting considerable influx of refugees in Guinea put pressure on government expenditures. As a result, the fiscal deficit rose to an average of 5 percent of GDP in 2000-2004. An accommodative monetary policy led to double digit inflation and a crowding out of credit to the private sector. A concomitant slowdown in the implementation of economic reforms, coupled with increased uncertainty in the political climate and deteriorating quality of public institutions, contributed to the slowdown in economic activity.en-USCC BY 3.0 IGOACCOUNTINGADEQUATE REGULATORY FRAMEWORKALLOCATIONANNUAL RATEBANKING SECTORBASELINE SCENARIOBASIC SERVICESBASIC SOCIAL SERVICESBRIBERYBRIBESBUDGET CYCLEBUDGET MANAGEMENTBUDGET OPERATIONSBUDGET OVERSIGHTBUDGET POLICIESBUDGET PREPARATIONBUDGET SYSTEMBUDGETARY PROCESSBUSINESS ENVIRONMENTBUSINESS REGULATIONSCAPITAL ACCUMULATIONCAPITAL SPENDINGCAPITAL STOCKCASH BASISCENTRAL BANKCIVIL SERVANTSCIVIL SERVICECORRUPT COUNTRIESCORRUPTIONCORRUPTION PERCEPTIONSDATA COLLECTIONDEBT BURDENDEBT MANAGEMENTDEBT RELIEFDEBT SERVICEDEBT SUSTAINABILITYDECENTRALIZATIONDEFICIT REDUCTIONDOMESTIC BORROWINGDOMESTIC CREDITDOMESTIC DEBTDOMESTIC INVESTMENTDOMESTIC MARKETDOMESTIC SAVINGSECONOMIC ACTIVITYECONOMIC GROWTHECONOMIC PERFORMANCEECONOMIC POLICYECONOMIC REFORMSEDUCATION EXPENDITURESEFFICIENCY GAINSEFFICIENT ALLOCATIONELASTICITIESEX POST ASSESSMENTEXCHANGE RATEEXOGENOUS SHOCKSEXPENDITURE CONTROLSEXPENDITURE MANAGEMENTEXPENDITURE MANAGEMENT SYSTEMEXPENDITURE TRACKINGEXTERNAL ARREARSEXTERNAL ASSISTANCEEXTERNAL BALANCEEXTERNAL DEBTEXTERNAL FINANCINGFINANCIAL SECTORFINANCIAL SERVICESFISCAL BALANCEFISCAL CONSOLIDATIONFISCAL DEFICITFISCAL DISCIPLINEFISCAL PERFORMANCEFISCAL POLICIESFISCAL POLICYFISCAL REVENUEFISCAL STRATEGYFOREIGN AIDFOREIGN EXCHANGEGOVERNANCE INDICATORSGOVERNANCE ISSUESGOVERNMENT EXPENDITURESGOVERNMENT POLICYGOVERNMENT REVENUESGROSS DOMESTIC PRODUCTGROSS FIXED CAPITAL FORMATIONGROWTH POTENTIALGROWTH RATEGROWTH RATESHEALTH CAREHEALTH CENTERSHEALTH EXPENDITURESHEALTH OUTCOMESHEALTH SECTORHEALTH SERVICESHEALTH UNITSHUMAN DEVELOPMENTINCOMEINCOME DISTRIBUTIONINFANT MORTALITYINFLATIONINFLATION RATEINFRASTRUCTURE SECTORINFRASTRUCTURE SERVICESINSTITUTIONAL FRAMEWORKINTEREST PAYMENTSINVESTMENT EXPENDITURESLIVING STANDARDSMACROECONOMIC ANALYSISMACROECONOMIC ENVIRONMENTMACROECONOMIC INSTABILITYMACROECONOMIC POLICIESMACROECONOMIC POLICYMACROECONOMIC STABILITYMACROECONOMIC STABILIZATIONMARKET TRANSACTIONSMEDIUM-TERM EXPENDITUREMEDIUM-TERM EXPENDITURE FRAMEWORKMISMANAGEMENTMISTRUSTMONETARY DISCIPLINEMONETARY POLICIESMONETARY POLICYMONETARY TERMSMONETARY UNIONNATIONAL BUDGETWorld Bank10.1596/7871