e US Embassy suspended operations on 14 June 1998 in the midst of
violent conflict between forces loyal to then President VIEIRA and
military-led junta; the US Ambassador to Senegal is accredited to
Guinea-Bissau

Flag description:

two equal horizontal bands of yellow (top) and green with a vertical
red band on the hoist side; there is a black five-pointed star
centered in the red band; uses the popular pan-African colors of
Ethiopia

Economy
Guinea-Bissau

Economy - overview:

One of the five poorest countries in the world, Guinea-Bissau
depends mainly on farming and fishing. Cashew crops have increased
remarkably in recent years, and the country now ranks sixth in
cashew production. Guinea-Bissau exports fish and seafood along with
small amounts of peanuts, palm kernels, and timber. Rice is the
major crop and staple food. However, intermittent fighting between
Senegalese-backed government troops and a military junta destroyed
much of the country's infrastructure and caused widespread damage to
the economy in 1998; the civil war led to a 28% drop in GDP that
year, with partial recovery in 1999-2002. Before the war, trade
reform and price liberalization were the most successful part of the
country's structural adjustment program under IMF sponsorship. The
tightening of monetary policy and the development of the private
sector had also begun to reinvigorate the economy. Because of high
costs, the development of petroleum, phosphate, and other mineral
resources is not a near-term prospect. Offshore oil prospecting is
underway in several sectors but has not yet led to commercially
viable crude deposits. The inequality of income distribution is one
of the most extreme in the world. The government and international
donors continue to work out plans to forward economic development
from a lamentably low base. In December 2003, the World Bank, IMF,
and UNDP were forced to step in to provide emergency budgetary
support in the amount of $107 million for 2004, representing over
80% of the total national budget. Government drift and indecision,
however, resulted in continued low growth in 2002-06. Higher raw
material prices boosted growth to 3.7% in 2007.

GDP (purchasing power parity):

$826.4 million (2007 est.)

GDP (official exchange rate):

$343 million (2007 est.)

GDP - real growth rate:

2.7% (2007 est.)

GDP - per capita (PPP):

$600 (2007 est.)

GDP - composition by sector:

agr