Months of political deadlock and street battles have clipped the wings of Guinea's economy, now expected to grow just 2.9 percent rather than 4.5 percent this year, a government official said on Monday. The west African state has attracted billions of dollars of mining investment in recent years but its progress has been hamstrung by rows over when a long-delayed legislative election should take place. Protests have been violent and often degenerated into ethnic clashes.
A finance ministry report, seen by Reuters, said social and political unrest had directly led to a reduction in economic activity in the first four months of the year, with trade flows slowing and raw materials production mixed. "After the publication of this report, Guinea's development partners, including the IMF (International Monetary Fund) have decided to lower the economic growth forecast for the year to 2.9 percent," said Emmanuel Sossouadouno, an economist in Guinea's finance ministry.
"To reverse this trend, we have to put an end to these crises that lead to tension that hits the economy. We will only hit our economic targets if we have stability," he added. The economy grew 3.9 percent growth last year, missing a target of 4.8 percent.
Earlier this month President Alpha Conde's camp and his rivals agreed to hold a legislative election - first due in 2011 - on September 24 this year. However, the political breakthrough was followed soon after by days of ethnic clashes in the far south-east of the country that killed 58 people and injured at least 160 more. According to the finance ministry report, in the first four months of 2013, customs revenues from imports and exports were down 3.7 percent and 27.1 percent, respectively, compared to the same time last year.
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