The economy of Guinea Bissau remains highly dependent on Cashew nuts, whose exports dropped significantly last year depriving the country of much needed revenue to diversify the economy and curb poverty, the World Bank said.
“While cashew production reached 260 thousand tons, the highest production yield on record, only 170 thousand tons were exported by the end of 2023. It is estimated that the remaining 90 thousand tons were smuggled out of the country into neighboring Senegal and Guinea. Consequently, economic growth remained below potential at 4.2 percent,” the Bank said in a recent report.
Weak cashew exports meant higher pressure on the fiscal situation, as total revenues fell, causing a widening of the fiscal deficit to 7.6%, it said.
Cashew’s make up some 95% of the country’s exports. The expected further drop in prices augurs ill for rural farmers in the country.
