Africa-Press – Angola. Inflation in Guinea-Bissau more than doubled in 2022 due to disruptions in supply chains, rising commodity prices caused by the war in Ukraine and fuel shortages, says a World Bank report.
The report, with the update of the country’s economic data presented in Bissau, states that inflation increased from 3.3 percent in 2021 to 7.6 percent in 2022.
The World Bank estimates that inflation will decline to 5 percent in 2023 as supply disruptions ease and fuel and energy prices stabilize.”
In the report, the World Bank warns, however, that rising prices may influence the well-being of families and the pace of poverty reduction.
“In general, the analysis indicates that inflation has reduced ‘per capita’ consumption” in all income distribution ratios, with the poorest families being able to increase “their vulnerability to the situation of greater poverty”.
The report’s data indicate that poverty in 2021 affected 19.9 percent of the population and that in 2022 that figure dropped to 19.2 percent, that is, there was a decline of 0.7 points.
“This figure is equivalent to 4,000 fewer people living in extreme poverty. The slow pace of poverty reduction in 2022 coincides with slower growth and higher inflation”, stresses the document.
The World Bank considers that “price controls for basic foodstuffs” and increased remittances could slightly mitigate the effects of the war in Ukraine, predicting that the poverty rate will fall to 18.4 percent in 2023 and 17 percent in 2024 .
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