IMF projects pick-up in Guinea Bissau economy this year

WASHINGTON: Increased exports of cashew nuts from Guinea Bissau, the world's seventh-largest producer, will help the economy recover this year, the International Monetary Fund said on Wednesday after talks with the authorities.

Cashew production in the impoverished West African nation fell last year after soldiers staged a military takeover in the coup-plagued former Portuguese colony.

"While the situation remains difficult in the context of continued political uncertainty, the economy is expected to recover in 2013 led by an upturn in cashew production and exports," the IMF said in a statement.

The IMF said it had also discussed the 2013 budget and donor support in meetings with the authorities between Feb. 13 to 19. The IMF said it also offered technical assistance to help with strengthening financial management, and tax and customs administration.

Wedged between Guinea and Senegal, Guinea Bissau is among the world's poorest countries and is struggling to contain growing drug trafficking. Most of the country's cashew nuts are exported to India, a major processor.