Guinea-Bissau’s public debt remained high in 2022, representing 81% of Gross Domestic Product (GDP), says a World Bank report with new economic data released today in Bissau.
“Debt remained high at 81% of GDP in 2022, from 78.9% in 2021, with the composition of external debt remaining stable at 41.2% of GDP,” the document reads.
The report notes that public debt “is expected to remain at high levels in 2023, at 78.2% of GDP, and to decline to 75.4% of GDP in 2024.”
“Despite projected economic growth, financing needs will remain high over the medium term” due to the “large wage bill, significantly increased interest payments, and investments to support economic recovery,” the report said.
The World Bank expects the “deficit to be covered mainly by external grants and concessional loans, as the government draws on sources other than BOAD [West African Development Bank], whose loans are almost entirely non-concessional.”
Over 30% of Guinea-Bissau‘s external debt is to the West African Bank for Development.
“In the medium term, the Government is committed to covering financing needs with external multilateral creditors on concessional terms. Strengthening investment planning and execution to ensure optimization of resources and greater alignment with the budget process will also reduce public debt,” the document adds.
With information from Lusa