Economy of Guinea-Bissau: cashew, economic sectors and trade

Economy of Guinea-Bissau: definition and main features

The economy of Guinea-Bissau rests on agriculture, and above all on the cashew nut, the country's main export product. Services, fishing and regional trade complete an activity that is still little diversified, which operates within the West African CFA franc zone and depends heavily on harvests and international prices.

Growth and macroeconomic balances

According to the World Bank, real gross domestic product grew by 5.8% in 2025, driven by a strong cashew harvest and by farmgate prices that supported rural incomes and household consumption. Inflation fell to 0.9% the same year.

Public finances remain under strain. Public debt reached 75.6% of GDP in 2025, above the ceiling set in the West African Economic and Monetary Union, and the budget deficit was reduced mainly by spending restraint rather than by new revenue.

The banking sector carries the legacy of non-performing loans above 22% of lending in mid-2025, which limits the credit available to the private sector. The political transition of November 2025 also weighed on investment.

Economic sectors

The cashew campaign, harvested in the first half of the year, supports a large share of rural families and supplies most of the foreign currency. Rice, grown in mangroves and on plains, feeds the population, but the country still imports a large share of its food needs.

Fishing holds a special place thanks to an exclusive economic zone rich in fish, exploited by national artisanal fleets and by foreign vessels under licence. The islands of the Bijagós archipelago, a UNESCO biosphere reserve, offer ecotourism potential limited by accessibility and infrastructure.

Industry still processes few products locally: most cashew nuts leave the country raw.

Foreign trade and currency

Foreign trade depends on a small number of products. Exports are dominated by the cashew nut, while imports cover fuel, food and capital goods. Fuel and food each account for about 30% of imports, according to the World Bank.

Rising freight costs squeeze the margins of cashew exporters, and higher prices for fuel and food raise the import bill. Guinea-Bissau adopted the West African CFA franc, with the code XOF, in 1997. It is issued by the Central Bank of West African States (BCEAO) and pegged to the euro at a fixed parity.

Investment and the business climate

The World Bank's enterprise survey, carried out in 2025, indicates that 61.2% of firms invest in fixed assets, against 45.1% in 2006. Labour productivity has nevertheless fallen, from 6.2% to minus 6.8% over the same period, a sign of hiring without an equivalent gain in output.

Firms cite taxation, access to finance and the unpredictability of institutions as the main obstacles. Gender gaps in access to credit narrow the productive base.