BISSAU, June 25 — The World Bank has called for reforms to boost private sector productivity in Guinea-Bissau, warning that job creation in the country has not been matched by corresponding gains in output.
In its Guinea-Bissau Economic Update Spring 2026, released on Wednesday, the World Bank said the country’s economy grew by 5.8 percent in 2025, supported by a strong cashew campaign and higher farmgate prices and rural incomes.
However, the report said Guinea-Bissau still faces structural constraints, including elevated public debt, a fragile financial sector, and weak productivity growth.
According to the report, the share of firms investing in fixed assets rose from 45.1 percent in 2006 to 61.2 percent in 2025, while labor productivity growth fell from 6.2 percent to minus 6.8 percent over the same period.
The World Bank projected Guinea-Bissau’s economic growth to slow to 4.8 percent in 2026, citing subdued investment, political uncertainty, and higher international food and fuel prices.
The report recommended improving the business environment, expanding access to finance, modernizing customs, strengthening public governance, and investing in energy and digital infrastructure to help firms grow and create better jobs. (Namibia Daily News / Xinhua)
